ContractsIntermediateDelaware Exam

What is 'imputed knowledge' in Delaware real estate agency law?

AKnowledge the agent is required to have as a professional
BKnowledge that a principal is deemed to have because their agent has itCorrect
CSimply narrow knowledge that is imputed only to a buyer through the findings of their own home inspection
DKnowledge required by the Commission for licensure

Why Knowledge that a principal is deemed to have because their agent has it Is Correct

Answer B: Knowledge that a principal is deemed to have because their agent has it

Under agency law, knowledge held by the agent is imputed (attributed) to the principal. If the agent knows of a material defect, the principal is deemed to know of it, even without direct disclosure.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

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