Brokers & Firms are in violation of which rule if they attach non-negotiated addenda to a contract to buy and sell?

Brokers & Firms are in violation of which rule if they attach non-negotiated addenda to a contract to buy and sell?

• A. RULE F-1
• B. RULE F-2
• C. RULE F-4
• D. RULE F-3

Answer: (D)

Rule F-3 governs how contract changes and addenda are handled. Addenda should reflect terms that were actually negotiated and agreed upon by the parties and their brokers. Attaching non-negotiated addenda means presenting terms that weren’t discussed or approved, which can mislead the other party and binds someone to terms without consent. That violates the obligation to deal honestly and to obtain proper authorization before modifying contract terms. The other rules address different duties and situations, not the specific issue of including addenda that weren’t negotiated.

Rule F-3 governs how contract changes and addenda are handled. Addenda should reflect terms that were actually negotiated and agreed upon by the parties and their brokers. Attaching non-negotiated addenda means presenting terms that weren’t discussed or approved, which can mislead the other party and binds someone to terms without consent. That violates the obligation to deal honestly and to obtain proper authorization before modifying contract terms. The other rules address different duties and situations, not the specific issue of including addenda that weren’t negotiated.