Contracts, Finance, and Transfer Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Tennessee Affiliate Broker Exam involving breach and agency and property condition disclosure practice. Which response best applies the rule? (Item 101)
Answer choices
- A. Identify nonperformance and available contractual remedies in a way that fits Tennessee exam practice.
- B. The rule applies only to commercial transactions and never to residential transactions.
- C. Client funds may be mixed with business funds if the broker reconciles the account later.
- D. The issue can be ignored if the parties want to close quickly.
Correct Answer
A. Identify nonperformance and available contractual remedies in a way that fits Tennessee exam practice.
Explanation
The correct answer is A because breach requires candidates to identify nonperformance and available contractual remedies. The Tennessee 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: breach