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PSI Exam Prep: Contracts Questions
and Answers Latest 2026
what requires that certain types of contracts, such as for
a property ownership transfer, be in writing to be legally
enforceable and to prevent injury from fraudulent
conduct. Ans: The statute of frauds
Is an oral contract enforceable in court? Ans: no
Offer and acceptance
Consideration
Legally competent parties
Legal purpose
Made voluntarily are all what Ans: needed for a valid
contract
what occurs when the parties enter into an agreement
voluntarily with full understanding of contract terms.
Ans: Offer and acceptance
what is the term for something of legal value offered by
one party and accepted by another, e.g., the buyer's
promise to pay the full purchase price, and the seller's
promise to transfer marketable title through delivery of a
deed. Ans: Consideration
© 2025 All rights reserved
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those who have the legal and mental capacity to enter
into a contract are known as Ans: Legally competent
parties
what means that the contract results in a legal outcome
Ans: Legal purpose
what kind of contract means the parties entered into the
agreement voluntarily. (Mistakes, misrepresentation,
fraud, duress, or undue influence create a situation in
which the consent is not real.) Ans: voluntary
contracts may be ? but unenforceable Ans: valid
What is severability Ans: the court can deem a term in
the contract unenforceable and enforce the remainder of
the contract
what kind of contract appears valid, but one or both
parties have a legal right to disaffirm it. Ans: voidable
How and when parties to a contract send notice regarding
contract terms is Ans: critical for avoiding breach of
contract situations
describes how contract-related notice may be made and
when notice is considered to have been received. Ans:
notices clause
a purchase or listing contract may permit contract parties
to select whether notices may be delivered electronically.
this is an example of Ans: notice clause
© 2025 All rights reserved
PSI Exam Prep: Contracts Questions
and Answers Latest 2026
what requires that certain types of contracts, such as for
a property ownership transfer, be in writing to be legally
enforceable and to prevent injury from fraudulent
conduct. Ans: The statute of frauds
Is an oral contract enforceable in court? Ans: no
Offer and acceptance
Consideration
Legally competent parties
Legal purpose
Made voluntarily are all what Ans: needed for a valid
contract
what occurs when the parties enter into an agreement
voluntarily with full understanding of contract terms.
Ans: Offer and acceptance
what is the term for something of legal value offered by
one party and accepted by another, e.g., the buyer's
promise to pay the full purchase price, and the seller's
promise to transfer marketable title through delivery of a
deed. Ans: Consideration
© 2025 All rights reserved
, 2 | Page
those who have the legal and mental capacity to enter
into a contract are known as Ans: Legally competent
parties
what means that the contract results in a legal outcome
Ans: Legal purpose
what kind of contract means the parties entered into the
agreement voluntarily. (Mistakes, misrepresentation,
fraud, duress, or undue influence create a situation in
which the consent is not real.) Ans: voluntary
contracts may be ? but unenforceable Ans: valid
What is severability Ans: the court can deem a term in
the contract unenforceable and enforce the remainder of
the contract
what kind of contract appears valid, but one or both
parties have a legal right to disaffirm it. Ans: voidable
How and when parties to a contract send notice regarding
contract terms is Ans: critical for avoiding breach of
contract situations
describes how contract-related notice may be made and
when notice is considered to have been received. Ans:
notices clause
a purchase or listing contract may permit contract parties
to select whether notices may be delivered electronically.
this is an example of Ans: notice clause
© 2025 All rights reserved
