An exam-prep coach in Gastonia is updating the policy manual on earnest money receipt, deposit, and disbursement. Which statement best applies under current North Carolina law?
Correct Answer
D) Disbursement of earnest money before a dispute is resolved must follow the contract, written release, court order, or authorized clerk-of-court procedure as applicable.
Disbursement of earnest money before a dispute is resolved must follow the contract, written release, court order, or authorized clerk-of-court procedure as applicable.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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