Contracts, Finance, and Transfer Practice Question
Question
A client asks whether a fact should be disclosed for the Ohio Real Estate Salesperson Exam involving counteroffer and Ohio Division of Real Estate. Which statement is the best answer? (Item 114)
Answer choices
- A. The issue can be ignored if the parties want to close quickly.
- B. Recognize that a counteroffer rejects the prior offer and proposes new terms in a way that fits Ohio exam practice.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Client funds may be mixed with business funds if the broker reconciles the account later.
Correct Answer
B. Recognize that a counteroffer rejects the prior offer and proposes new terms in a way that fits Ohio exam practice.
Explanation
The correct answer is B because counteroffer requires candidates to recognize that a counteroffer rejects the prior offer and proposes new terms. The Ohio 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: counteroffer