Section 16: Unit 7/Exam

What must be in place before a licensee can advise a client?

A signed agency agreement

In which of the following scenarios is impossibility of contract performance occurring?

Due to circumstances beyond their control, the parties can't legally or practically do what they've agreed to do.

Rumi was on vacation in St. Croix when he received a written offer, via email, for his seller client's property, which had been on the market for two months with no offers. He decided to hold onto it until he got back a week later, so he could present it to his client in person. The next day, his seller client called Rumi's office to cancel the listing. When Rumi told the former client that he'd had an offer, she complained to MREC about him. What are the possible penalties Rumi could face?

He could be disciplined by the commission and receive a possible lawsuit for intentional interference.

partial performance

One or both parties have completed only a portion of the terms agreed to in the contract.

Specific performance

One party did not meet the terms of the contract in the specified time frame and must now to do exactly what was agreed to in the contract.

Licensed property managers in Maryland must maintain related records for at least five years, beginning on the date ______.

The property management agreement terminates

Performance

both parties fully perform the contract, the contract has been executed, and the parties are now discharged from their duties

performance of contract

both the buyer and seller meet all of the terms of a contract

tort

damages another person and can lead to legal action

tortious interference

if one person (in this case, the licensee) intentionally damages the other person's (property owner's) contractual or other business relationships.

Impossibility of performance

parties cannot legally or practically do what they've agreed to do