Contracts, Finance, and Transfer Practice Question
Question
A license applicant is reviewing a practice scenario for the Pennsylvania Real Estate Salesperson Exam involving liquidated damages and state agreement and disclosure practice. Which response best applies the rule? (Item 49)
Answer choices
- A. Identify pre-agreed damages provisions subject to applicable law in a way that fits Pennsylvania exam practice.
- B. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- C. The client’s preference eliminates the need to disclose known material facts.
- D. The party who complains first automatically receives the remedy requested.
Correct Answer
A. Identify pre-agreed damages provisions subject to applicable law in a way that fits Pennsylvania exam practice.
Explanation
The correct answer is A because liquidated damages requires candidates to identify pre-agreed damages provisions subject to applicable law. The Pennsylvania 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: easy
- Domain: Contracts, Finance, and Transfer
- Objective: liquidated damages