Michigan Builder Salesperson License Pt. 2 Exam Q&A’s Latest Update 100% Pass
Michigan Builder Salesperson License Pt. 2
Exam Q&A’s Latest Update 100% Pass
Agent - ANS ✔ - Someone with the authority to bind someone else by contract- most of the
salespeople you deal with are this.
Agent-Principal Relationship - ANS ✔ - As long as agents do not exceed the authority granted them
by their principals, contracts they make bind their principals as if the principals had made the
contracts themselves. While acting on behalf of principals, agents are required to put their own
interests after those of the principal.
Exceeding Authority - ANS ✔ - Under the doctrine of apparent authority, if the person they're dealing
with doesn't reasonably understand that they're exceeding their authority, the principal may be
bound by the contract negotiated by the agent. An example of this would be an automobile
salesperson signs a contract on behalf of a car dealer which, without the dealer's authority, gives the
customer a warranty for 40,000 extra miles. In that case, the dealer might very well be bound by the
contract.
Contracts - ANS ✔ - Agreements entered into voluntarily by two or more parties who promise to
exchange money, goods, or services according to a schedule.
Typical rules to follow when considering a contract - ANS ✔ - Oral contracts are valid but often
difficult to enforce.
Oral contracts are NEVER valid in Michigan for residential construction projects.
All contracts must be entered into willingly and freely.
The contract content must be legal.
Minors, the insane, and others viewed by law as unable to care for themselves are usually forbidden
from signing contracts.
Clarity of Language - ANS ✔ - One of the most important aspects of interpreting contracts and
avoiding disputes.
@LOSLIBROS
, Michigan Builder Salesperson License Pt. 2 Exam Q&A’s Latest Update 100% Pass
In the event of a conflict in the terms of a contract, these rules apply: - ANS ✔ - Specific provisions
over general provisions.
Handwritten provisions over typed provisions. An ink pen is the most powerful contract tool you
own.
Typed provisions over printed provisions.
Words over numbers.
Specifications over drawings.
Required Contract Elements - ANS ✔ - Offer, Acceptance, Consideration, Competent parties, and a
legal purpose.
Typical content of a home building contract includes: - ANS ✔ - 1. Names of all parties
2. Addresses of all parties
3. Phone, fax, email contacts, and procedures
4. Date of contract
5. Property description
6. Street address
7. Subdivision
8. Homeowners association if any
9. Amount of contract
10. Terms of financing
11. Construction draw schedule
12. Construction draw procedure
13. Insurance requirements
14. Start date and definition
15. Completion date and definition
16. Plans, drawings, blueprints, and sketches
17. Specifications (as complete as possible)
18. Substitution policy
19. Allowances (including labor and material)
20. Change Order procedures and pricing
21. Who can authorize change orders
@LOSLIBROS
Michigan Builder Salesperson License Pt. 2
Exam Q&A’s Latest Update 100% Pass
Agent - ANS ✔ - Someone with the authority to bind someone else by contract- most of the
salespeople you deal with are this.
Agent-Principal Relationship - ANS ✔ - As long as agents do not exceed the authority granted them
by their principals, contracts they make bind their principals as if the principals had made the
contracts themselves. While acting on behalf of principals, agents are required to put their own
interests after those of the principal.
Exceeding Authority - ANS ✔ - Under the doctrine of apparent authority, if the person they're dealing
with doesn't reasonably understand that they're exceeding their authority, the principal may be
bound by the contract negotiated by the agent. An example of this would be an automobile
salesperson signs a contract on behalf of a car dealer which, without the dealer's authority, gives the
customer a warranty for 40,000 extra miles. In that case, the dealer might very well be bound by the
contract.
Contracts - ANS ✔ - Agreements entered into voluntarily by two or more parties who promise to
exchange money, goods, or services according to a schedule.
Typical rules to follow when considering a contract - ANS ✔ - Oral contracts are valid but often
difficult to enforce.
Oral contracts are NEVER valid in Michigan for residential construction projects.
All contracts must be entered into willingly and freely.
The contract content must be legal.
Minors, the insane, and others viewed by law as unable to care for themselves are usually forbidden
from signing contracts.
Clarity of Language - ANS ✔ - One of the most important aspects of interpreting contracts and
avoiding disputes.
@LOSLIBROS
, Michigan Builder Salesperson License Pt. 2 Exam Q&A’s Latest Update 100% Pass
In the event of a conflict in the terms of a contract, these rules apply: - ANS ✔ - Specific provisions
over general provisions.
Handwritten provisions over typed provisions. An ink pen is the most powerful contract tool you
own.
Typed provisions over printed provisions.
Words over numbers.
Specifications over drawings.
Required Contract Elements - ANS ✔ - Offer, Acceptance, Consideration, Competent parties, and a
legal purpose.
Typical content of a home building contract includes: - ANS ✔ - 1. Names of all parties
2. Addresses of all parties
3. Phone, fax, email contacts, and procedures
4. Date of contract
5. Property description
6. Street address
7. Subdivision
8. Homeowners association if any
9. Amount of contract
10. Terms of financing
11. Construction draw schedule
12. Construction draw procedure
13. Insurance requirements
14. Start date and definition
15. Completion date and definition
16. Plans, drawings, blueprints, and sketches
17. Specifications (as complete as possible)
18. Substitution policy
19. Allowances (including labor and material)
20. Change Order procedures and pricing
21. Who can authorize change orders
@LOSLIBROS
