What would happen to the broker's commission in a situation in which the property was damaged by fire after the sales contract was entered into, but before the transaction closed? Suppose that the sales contract provided that the seller was to carry the risk of loss between the time of the contract for sale and closing, and that the insurer was obligated to pay for the damages caused by the fire. Suppose further that after inspecting the property, the buyer opts to exercise his right to terminate the purchase contract on the grounds that the property could not be delivered in substantially the same condition as it was when the contract was signed. Does this fit into a ready, willing, and able buyer situation in which the broker delivered the buyer, but the closing did not occur? Or would it be that the buyer was no longer willing? Do we measure from the time the contract is entered into or do we measure from the time of the closing?
Question 2
Under the known user rule: ______.
A) the accountant is not liable to any third parties who experience a loss as a result of the accountant's negligence.
B) the accountant is liable to all third parties who experience a loss as a result of the accountant's negligence.
C) the accountant is liable to third parties who experience a loss as a result of the accountant's negligence but only if the accountant knew the third party would be using the work product.
D)the accountant is liable to third parties who experience a loss as a result of the accountant's negligence but only if the accountant's client gave the work to the third party.
The joint commission 2011
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