Contracts, Finance, and Transfer Practice Question
Question
A license applicant is reviewing a practice scenario for the North Carolina Real Estate Broker Exam involving liquidated damages and North Carolina Real Estate Commission. Which statement is most accurate for exam purposes? (Item 67)
Answer choices
- A. The party who complains first automatically receives the remedy requested.
- B. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- C. Identify pre-agreed damages provisions subject to applicable law in a way that fits North Carolina exam practice.
- D. The client’s preference eliminates the need to disclose known material facts.
Correct Answer
C. Identify pre-agreed damages provisions subject to applicable law in a way that fits North Carolina exam practice.
Explanation
The correct answer is C because liquidated damages requires candidates to identify pre-agreed damages provisions subject to applicable law. The North Carolina reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.
Question details
- Difficulty: medium
- Domain: Contracts, Finance, and Transfer
- Objective: liquidated damages