REAL ESTATE CONTRACTS 2026/2027 QUESTIONS AND
SOLUTIONS RATED A+
✔✔Bilateral Contract - ✔✔Both parties promise to do something; one promise is given
in exchange for another.
✔✔Breach of contract - ✔✔Violation of any terms or conditions in the contract without
legal excuse.
✔✔Consideration - ✔✔The process wherein each party to a contract makes a sacrifice
and each party receives a benefit. It is an essential element of any contract.
✔✔Contingencies - ✔✔Provisions in a contract that requires a certain act to be done or
a certain event to occur before the contract becomes binding.
✔✔Counteroffer - ✔✔A response to an offer wherein the offeree changes one or more
of the terms of the contract, becomes the offeror, and sends the offer back to the
original offeror.
✔✔Disclosure - ✔✔Relevant information or facts that are known or should have been
known.
✔✔Earnest Money - ✔✔A deposit of money paid by a buyer for real property as
evidence of good faith.
✔✔Enforceable Contract - ✔✔A contract that meets all the elements of a valid contract.
✔✔Executed Contract - ✔✔A contract with all of the terms completed by all parties.
✔✔Executory Contract - ✔✔A contract that is not fully performed, but which is not in
default.
✔✔Express Contract - ✔✔The parties state the terms and show their intentions in
words, either oral or written.
✔✔Implied Contract - ✔✔The agreement of the parties is demonstrated by their acts or
conduct.
✔✔Land Contract - ✔✔A document wherein the lender (usually the seller) retains title to
the property until the debt is paid. It is also referred to as an installment sales contract
or an agreement of sale.
SOLUTIONS RATED A+
✔✔Bilateral Contract - ✔✔Both parties promise to do something; one promise is given
in exchange for another.
✔✔Breach of contract - ✔✔Violation of any terms or conditions in the contract without
legal excuse.
✔✔Consideration - ✔✔The process wherein each party to a contract makes a sacrifice
and each party receives a benefit. It is an essential element of any contract.
✔✔Contingencies - ✔✔Provisions in a contract that requires a certain act to be done or
a certain event to occur before the contract becomes binding.
✔✔Counteroffer - ✔✔A response to an offer wherein the offeree changes one or more
of the terms of the contract, becomes the offeror, and sends the offer back to the
original offeror.
✔✔Disclosure - ✔✔Relevant information or facts that are known or should have been
known.
✔✔Earnest Money - ✔✔A deposit of money paid by a buyer for real property as
evidence of good faith.
✔✔Enforceable Contract - ✔✔A contract that meets all the elements of a valid contract.
✔✔Executed Contract - ✔✔A contract with all of the terms completed by all parties.
✔✔Executory Contract - ✔✔A contract that is not fully performed, but which is not in
default.
✔✔Express Contract - ✔✔The parties state the terms and show their intentions in
words, either oral or written.
✔✔Implied Contract - ✔✔The agreement of the parties is demonstrated by their acts or
conduct.
✔✔Land Contract - ✔✔A document wherein the lender (usually the seller) retains title to
the property until the debt is paid. It is also referred to as an installment sales contract
or an agreement of sale.
