Contracts, Finance, and Transfer Practice Question
Question
A salesperson notices a possible compliance problem for the Tennessee Affiliate Broker Exam involving specific performance and Tennessee Real Estate Commission. Which statement is the best answer? (Item 66)
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