Either or both of these can happen.
On the approach to a junction there is a wire loop between the rails which reads information from a transponder underneath the tram. Usually this includes the route it is taking, so if other conflicting tram routes and road traffic signals permit, the system will immediately set the correct route and also call all traffic signals to stop other movements and give the tram priority. Tram signals work in the same way as traffic signals, but to avoid confusion they use a horizontal white bar for stop and a vertical white bar for proceed. However like the rest of the tramway and like a road, the driver is responsible for stopping short of any obstruction such as another tram or a road vehicle. This is unlike railways where a driver seeing a main proceed aspect is sure of a clear route at least as far as the next main signal.
There is also a second loop just on the approach to the signal, so if the tram does not get priority it will come to a stop on this loop and the route can be requested again. The driver can also do manual requests from the cab, which is useful for trams not running a standard route or for busy stops where it may not be sensible to call the route until the tram is ready to go. In some cases the point can only be called from the cab, particularly in busy pedestrian areas where the driver must make sure there is nobody standing on the point blade before it is moved.