Contracts, Finance, and Transfer Practice Question
Question
A salesperson notices a possible compliance problem for the Washington Real Estate Broker Exam involving liquidated damages and Washington broker licensing structure. What should the licensee understand? (Item 175)
Answer choices
- A. The client’s preference eliminates the need to disclose known material facts.
- B. The party who complains first automatically receives the remedy requested.
- C. Identify pre-agreed damages provisions subject to applicable law in a way that fits Washington exam practice.
- D. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
Correct Answer
C. Identify pre-agreed damages provisions subject to applicable law in a way that fits Washington exam practice.
Explanation
The correct answer is C because liquidated damages requires candidates to identify pre-agreed damages provisions subject to applicable law. The Washington 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