Welhome Realty,a real estate giant,hires agents to help it out with the sale of land.As the standard pay package would not be motivating enough for the agents' performance,the owner decides to provide them with incentives.Per the scheme,for every piece of land that is sold above the market price,the agents will receive 10% of the differential amount as bonus in addition to their salary for sale at market price.Which of the following satisfies the condition for a contingency contract?

Question

Quizplus · Accepted Answer

A contingency contract should have clear conditions for the performance of the parties involved. Option A does not cover the incentives for the agents, Option C describes a difficulty in determining market value which is not relevant to the contingency contract and Option D gives too much discretion to the owner. Option B offers a specific incentive of 10% of any value above the market price and also has a written contract covering this condition, making it the best choice for a contingency contract.

Welhome Realty,a Real Estate Giant,hires Agents to Help It Out