Contracts, Finance, and Transfer Practice Question
Question
A client asks whether a fact should be disclosed for the Oregon Real Estate Broker Exam involving specific performance and Oregon Real Estate Agency. Which response best applies the rule? (Item 12)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. The issue can be ignored if the parties want to close quickly.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Recognize a court order requiring contract performance in appropriate cases in a way that fits Oregon exam practice.
Correct Answer
D. Recognize a court order requiring contract performance in appropriate cases in a way that fits Oregon exam practice.
Explanation
The correct answer is D because specific performance requires candidates to recognize a court order requiring contract performance in appropriate cases. 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: hard
- Domain: Contracts, Finance, and Transfer
- Objective: specific performance