License holder Garcia is working as an intermediary in a transaction where she represents both the buyer and seller. The buyer wants to add a special provision limiting the seller's remedies if the buyer defaults. Garcia should:
Correct Answer
D) Suggest the buyer consult an attorney to draft the provision
Regardless of the license holder's intermediary status, the prohibition against drafting legal provisions applies. Garcia should advise the buyer to consult an attorney for any custom legal provisions. Intermediary status does not expand or restrict the license holder's authority regarding promulgated forms.
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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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Which of the following transactions does NOT require the use of a TREC promulgated contract form by a Texas license holder?
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