Contracts, Finance, and Transfer Practice Question
Question
A salesperson notices a possible compliance problem for the South Carolina Real Estate Salesperson Exam involving liquidated damages and agency disclosure and broker supervision. Which answer best reduces risk? (Item 31)
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 South 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 South 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 South 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