CHAMPIONS LAW OF CONTRACTS EXAM 2025/2026
QUESTIONS WITH ANSWERS GRADED A+
✔✔What does a real estate agent do with multiple offers on a property?
(a) He/she can choose the best offer for the client
(b) He/she can hold all offers until one comes in that is over the asking price
(c) He/she may present the highest offers only
(d) He/she must present all offers to the client - ✔✔(d) He/she must present all offers to
the client
✔✔An offer can be communicated by ________.
(a) letter
(b) phone
(c) either a or b
(d) must be done orally - ✔✔(c) either a or b
✔✔A permanent marker installed on the land by a surveyor is called ______.
(a) a monument
(b) metes
(c) bounds
(d) a lot - ✔✔(a) a monument
✔✔What is made when a party changes an offer in some way and communicates the
change to the other party?
(a) A rejection
(b) A counteroffer
(c) An evaluation
(d) An acceptance of the offer - ✔✔(b) A counteroffer
✔✔Which of the following description uses terminal points and angles to describe a
parcel of land?
(a) Lot and block
(b) Government Survey System
(c) Metes and Bounds
(d) Street address - ✔✔(c) Metes and Bounds
✔✔A counteroffer is a two-step process that involves _______.
(a) a rejection
(b) a new offer
,(c) the ability to be withdrawn prior to acceptance
(d) all of these are correct - ✔✔(d) all of these are correct
✔✔If a seller chooses to receive a buyer's earnest money after the buyer defaults on a
contract it is known as _______.
(a) a suit for specific performance
(b) money damages
(c) liquidated damages
(d) mutual rescission - ✔✔(c) liquidated damages
✔✔The blank space provided for the special provisions to the contract allows license
holders to insert which of the following?
(a) Factual business details
(b) Statements not addressed in the contract
(c) Information for which there is no TREC-promulgated addendum, lease or mandatory
form
(d) All of these are correct - ✔✔(d) All of these are correct
✔✔Due to _______ an offer by a prospective purchaser can be terminated prior to
acceptance.
(a) expiration of a specified time period
(b) bankruptcy of either party
(c) a change in the law that renders the contract illegal
(d) All of these are correct - ✔✔(d) All of these are correct
✔✔Ownership of real property can be divided among _______.
a. surface rights
b. air rights
c. subsurface rights
d. any and all of the above - ✔✔d. any and all of the above
✔✔Which of the following is NOT considered a common addenda form?
a. Exclusive Right to Sell
b. Financing addendum
c. Mineral reservations
d. Lead-based paint - ✔✔a. Exclusive Right to Sell
✔✔Which of the following is true of an addendum to a contract?
a. It is a provision in a contract that requires that a certain act or event happens in order
, for the contract to be binding on the party.
b. It is synonymous with contingent
c. It is an attachment that adds or further describes the rights and duties of the parties.
d. All of these are correct - ✔✔c. It is an attachment that adds or further describes the
rights and duties of the parties.
✔✔The contract should include a(n) __________ in case there are any title problems
that the seller has that could become future problems for the new buyer.
(a) Appraisal contingency
(b) Financing contingency
(c) Sale of other property contingency
(d) Title contingency - ✔✔(d) Title contingency
✔✔Common time frames in an escape clause are typically ______.
(a) 1 year
(b) 2 weeks
(c) 72 hours
(d) at any time if the seller is unsatisfied - ✔✔(c) 72 hours
✔✔In some states, it is common for a contract to be subject to satisfactory inspections,
unsatisfactory results leading to ______ of the contract.
(a) rewording
(b) execution
(c) novation
(d) termination - ✔✔(d) termination
✔✔An "_______" date is usually the closing date specified in a contract.
(a) on or before
(b) termination
(c) exact
(d) amended - ✔✔(a) on or before
✔✔An attachment that adds or further describes the rights and duties of the parties is
a(n) ______ to a contract.
(a) contingency
(b) addendum
(c) amendment
(d) consideration - ✔✔(b) addendum
✔✔The federal requirement ________ is the Lead-Based Paint Disclosure.
QUESTIONS WITH ANSWERS GRADED A+
✔✔What does a real estate agent do with multiple offers on a property?
(a) He/she can choose the best offer for the client
(b) He/she can hold all offers until one comes in that is over the asking price
(c) He/she may present the highest offers only
(d) He/she must present all offers to the client - ✔✔(d) He/she must present all offers to
the client
✔✔An offer can be communicated by ________.
(a) letter
(b) phone
(c) either a or b
(d) must be done orally - ✔✔(c) either a or b
✔✔A permanent marker installed on the land by a surveyor is called ______.
(a) a monument
(b) metes
(c) bounds
(d) a lot - ✔✔(a) a monument
✔✔What is made when a party changes an offer in some way and communicates the
change to the other party?
(a) A rejection
(b) A counteroffer
(c) An evaluation
(d) An acceptance of the offer - ✔✔(b) A counteroffer
✔✔Which of the following description uses terminal points and angles to describe a
parcel of land?
(a) Lot and block
(b) Government Survey System
(c) Metes and Bounds
(d) Street address - ✔✔(c) Metes and Bounds
✔✔A counteroffer is a two-step process that involves _______.
(a) a rejection
(b) a new offer
,(c) the ability to be withdrawn prior to acceptance
(d) all of these are correct - ✔✔(d) all of these are correct
✔✔If a seller chooses to receive a buyer's earnest money after the buyer defaults on a
contract it is known as _______.
(a) a suit for specific performance
(b) money damages
(c) liquidated damages
(d) mutual rescission - ✔✔(c) liquidated damages
✔✔The blank space provided for the special provisions to the contract allows license
holders to insert which of the following?
(a) Factual business details
(b) Statements not addressed in the contract
(c) Information for which there is no TREC-promulgated addendum, lease or mandatory
form
(d) All of these are correct - ✔✔(d) All of these are correct
✔✔Due to _______ an offer by a prospective purchaser can be terminated prior to
acceptance.
(a) expiration of a specified time period
(b) bankruptcy of either party
(c) a change in the law that renders the contract illegal
(d) All of these are correct - ✔✔(d) All of these are correct
✔✔Ownership of real property can be divided among _______.
a. surface rights
b. air rights
c. subsurface rights
d. any and all of the above - ✔✔d. any and all of the above
✔✔Which of the following is NOT considered a common addenda form?
a. Exclusive Right to Sell
b. Financing addendum
c. Mineral reservations
d. Lead-based paint - ✔✔a. Exclusive Right to Sell
✔✔Which of the following is true of an addendum to a contract?
a. It is a provision in a contract that requires that a certain act or event happens in order
, for the contract to be binding on the party.
b. It is synonymous with contingent
c. It is an attachment that adds or further describes the rights and duties of the parties.
d. All of these are correct - ✔✔c. It is an attachment that adds or further describes the
rights and duties of the parties.
✔✔The contract should include a(n) __________ in case there are any title problems
that the seller has that could become future problems for the new buyer.
(a) Appraisal contingency
(b) Financing contingency
(c) Sale of other property contingency
(d) Title contingency - ✔✔(d) Title contingency
✔✔Common time frames in an escape clause are typically ______.
(a) 1 year
(b) 2 weeks
(c) 72 hours
(d) at any time if the seller is unsatisfied - ✔✔(c) 72 hours
✔✔In some states, it is common for a contract to be subject to satisfactory inspections,
unsatisfactory results leading to ______ of the contract.
(a) rewording
(b) execution
(c) novation
(d) termination - ✔✔(d) termination
✔✔An "_______" date is usually the closing date specified in a contract.
(a) on or before
(b) termination
(c) exact
(d) amended - ✔✔(a) on or before
✔✔An attachment that adds or further describes the rights and duties of the parties is
a(n) ______ to a contract.
(a) contingency
(b) addendum
(c) amendment
(d) consideration - ✔✔(b) addendum
✔✔The federal requirement ________ is the Lead-Based Paint Disclosure.
