1. Which of the subsequent is true of real estate commissions?
A) If the seller hasn't given the broker a specific closing date the law assumes the contract to end 30 days after the creation of the contract however the broker will not be entitled for a commission.
B) If the seller hasn't given the broker specific terms of price or closing date then the commission isn't earned until the contract of purchase has been made.
C) If the seller hasn't given the broker a specific closing date the broker can suppose a reasonable closing date as well as can also claim a commission for an incomplete sale.
D) If the seller hasn't given the broker specific terms on price, the broker can sell the property on his own terms as well as claim for the commission.
2 To avoid being bound by the acts of the agent afterward the agency has ended, the principal-
A) must give verbal notice if the termination is due to loss of legal capacity by the principal.
B) Must give constructive notice to those who have dealt with the former agent.
C) Must give actual notice if the termination is due to impossibility of performance.
D) Must give actual notice to those who have dealt with the former agent.
3 An agency relationship-
A) Can be either compensated or uncompensated.
B) Can be formed only by contract.
C) Will not exist if the parties have specifically agreed that they do not intend to create one.
D) Exists only when it is in the form of a written document signed by both the parties.
4 If an agent indulges in commingling-
A) He is breaching the duty to communicate information.
B) He probably will not be accountable for loss to the principal.
C) He bears the risk of any loss to the principal.
D) He will not be accountable for any loss to the principal if the property is not wrongfully used.
5 To avoid being bound by the acts of the go-between after the agency has ended the principal should give constructive notice-
A) To those who knew of the agency however had never dealt with it before termination.
B) To those who have distributed with the former agent.
C) To those who never distinguished of existence of the agency.
D) To everyone who the principal was in contract with before the termination.
6 When an agent breaches a duty owed to the principal, the agent-
A) mayn't be discharged until contractual damages are paid.
B) Mayn't be discharged until the contract has expired.
C) May be discharged merely if the principal can show actual damage.
D) May be discharged without liability in spite of an unexpired contract.