Contracts, Finance, and Transfer Practice Question
Question
A seller is preparing to list a home for the Oregon Real Estate Broker Exam involving liquidated damages and Oregon Real Estate Agency. Which statement is most accurate for exam purposes? (Item 67)
Answer choices
- A. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- B. The client’s preference eliminates the need to disclose known material facts.
- C. Identify pre-agreed damages provisions subject to applicable law in a way that fits Oregon exam practice.
- D. The party who complains first automatically receives the remedy requested.
Correct Answer
C. Identify pre-agreed damages provisions subject to applicable law in a way that fits Oregon exam practice.
Explanation
The correct answer is C because liquidated damages requires candidates to identify pre-agreed damages provisions subject to applicable law. The Oregon 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