Contracts and Promulgated Forms Practice Question
Question
A buyer asks a licensee for an exam-focused explanation in a Texas real estate transaction involving default remedies. What should the licensee understand? (Item 347)
Answer choices
- A. The client’s preference eliminates the need to disclose known material facts.
- B. The party who complains first automatically receives the legal remedy requested.
- C. Recognize liquidated damages, specific performance, and other contractual remedies.
- D. Escrow automatically assumes all brokerage disclosure and agency duties.
Correct Answer
C. Recognize liquidated damages, specific performance, and other contractual remedies.
Explanation
The correct answer is C because default remedies requires candidates to recognize liquidated damages, specific performance, and other contractual remedies. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound Texas exam practice.
Question details
- Difficulty: medium
- Domain: Contracts and Promulgated Forms
- Objective: default remedies