Contracts, Finance, and Transfer Practice Question
Question
A license applicant is reviewing a practice scenario for the Tennessee Affiliate Broker Exam involving specific performance and agency and property condition disclosure practice. Which response best applies the rule? (Item 102)
Answer choices
- A. The safest practice is to avoid written documentation so fewer questions are raised later.
- B. Recognize a court order requiring contract performance in appropriate cases in a way that fits Tennessee exam practice.
- C. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
- D. A verbal understanding always replaces a written real estate requirement.
Correct Answer
B. Recognize a court order requiring contract performance in appropriate cases in a way that fits Tennessee exam practice.
Explanation
The correct answer is B because specific performance requires candidates to recognize a court order requiring contract performance in appropriate cases. 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: medium
- Domain: Contracts, Finance, and Transfer
- Objective: specific performance