GA AUCTION FINAL PAPER 2025/2026 QUESTIONS WITH
ANSWERS TAGGED A+
✔✔Parol evidence in a contract may be abided by, but is not enforceable in a court of
law.
T or F? - ✔✔True
✔✔Compliance with the statue of frauds requires - ✔✔Names of parties to the contract,
statement of related subject matter, all terms and conditions, signature of the parties
✔✔A contract to perform an action which is impossible to performs is a valid contract.
T or F? - ✔✔False
✔✔Which essential element of a valid contract is not required to prove legal capacity? -
✔✔A citizen of Georgia
✔✔Misrepresentations and mistakes both affect the validity of a contract.
T or F? - ✔✔True
✔✔Acceptance of an offer is one of the essential elements if a valid contract. When
your bidder rejects his bid prior to completing the sale, the backup bidder is obligated to
accept the last bid received.
T or F? - ✔✔False
✔✔Something of value must be received to make a contract binding, "Love and
affection" is accepted as a form of consideration.
T or F? - ✔✔False
✔✔Acceptance of an offer by a party influenced under duress or undue influence is not
enforceable.
T or F - ✔✔True
✔✔An emancipated minor can enforce a contract.
T or F - ✔✔True
✔✔A mentally incompetent person cannot enforce a contract. When can this person
enforce a contract? - ✔✔When they are adjudged competent by the courts.
✔✔A void contract was never legal this it was binding.
T or F - ✔✔True
,✔✔A void able contract is an example of making a contract with a minor, which can be
made void at the option of the minor, but not made by the responsible party of the
contract.
T or F - ✔✔True
✔✔Requirements of a valid contract are - ✔✔Competent parties, mutual agreement,
consideration, legal purpose, in writing.
✔✔A unilateral contract is an agreement between two parties.
T or F - ✔✔False
✔✔Written auction contract - ✔✔Expressed
✔✔Auction contracts are usually assignable.
T or F - ✔✔False
✔✔A breach of contract situation occurs when - ✔✔A violation of terms of the contract
agreement occurs
✔✔Remedies for breach of contract may be - ✔✔Damages that are Compensatory,
punitive, nominal, or liquidated
✔✔Punitive damages for breach of contract - ✔✔Payment to punish the party breaching
the contract
✔✔When either the auctioneer of the seller violates the conditions of the contract either
party can be charged with breach of contract.
T or F? - ✔✔True
✔✔Failure to disclose agency relationship may lose your auction license.
T or F - ✔✔True
✔✔An oral contract may be permitted to establish agency relationships.
T or F - ✔✔False
✔✔Client - ✔✔The seller in an agency relationship
✔✔In a fiduciary relationship, the auctioneer is to place the welfare of their client ahead
of their own.
T or F - ✔✔True
✔✔An auctioneer may represent both the seller and buyer after full disclosure.
T or F - ✔✔True
, ✔✔Auctioneer is not responsive for wrongdoings of seller by disclosure of agency
relationship.
T or F - ✔✔True
✔✔Quickly dropping the bid to a friend is not a violation of the seller/agency
relationship.
T or F - ✔✔False
✔✔Auctioneer should it disclose any harmful information about the seller.
T or F - ✔✔True
✔✔Misrepresentation by the auctioneer on behalf of seller may cause civil and criminal
liability to the seller.
T or F - ✔✔True
✔✔Furnishing public information to the buyer may be violation of the agency
relationship.
T or F - ✔✔False
✔✔Duties of the seller include compensating the auctioneer according to terms of the
contract.
T or F - ✔✔True
✔✔An auction contract establishes a special agency relationship which is the same as a
power of attorney.
T or F - ✔✔True
✔✔Material misrepresentations made by and auctioneer constitute fraud.
T or F - ✔✔True
✔✔An auctioneer who designs with another (buyer) to defraud (seller) third party is
guilty if fraud.
T or F - ✔✔True
✔✔Operating in a negligent manner is a form of fraud.
T or F - ✔✔True
✔✔And attempt to fix commission is a violation of the Sherman-Clayton Act.
T or F - ✔✔True
✔✔An auctioneer may receive commission from both the seller and buyer but only with
full disclosure.
ANSWERS TAGGED A+
✔✔Parol evidence in a contract may be abided by, but is not enforceable in a court of
law.
T or F? - ✔✔True
✔✔Compliance with the statue of frauds requires - ✔✔Names of parties to the contract,
statement of related subject matter, all terms and conditions, signature of the parties
✔✔A contract to perform an action which is impossible to performs is a valid contract.
T or F? - ✔✔False
✔✔Which essential element of a valid contract is not required to prove legal capacity? -
✔✔A citizen of Georgia
✔✔Misrepresentations and mistakes both affect the validity of a contract.
T or F? - ✔✔True
✔✔Acceptance of an offer is one of the essential elements if a valid contract. When
your bidder rejects his bid prior to completing the sale, the backup bidder is obligated to
accept the last bid received.
T or F? - ✔✔False
✔✔Something of value must be received to make a contract binding, "Love and
affection" is accepted as a form of consideration.
T or F? - ✔✔False
✔✔Acceptance of an offer by a party influenced under duress or undue influence is not
enforceable.
T or F - ✔✔True
✔✔An emancipated minor can enforce a contract.
T or F - ✔✔True
✔✔A mentally incompetent person cannot enforce a contract. When can this person
enforce a contract? - ✔✔When they are adjudged competent by the courts.
✔✔A void contract was never legal this it was binding.
T or F - ✔✔True
,✔✔A void able contract is an example of making a contract with a minor, which can be
made void at the option of the minor, but not made by the responsible party of the
contract.
T or F - ✔✔True
✔✔Requirements of a valid contract are - ✔✔Competent parties, mutual agreement,
consideration, legal purpose, in writing.
✔✔A unilateral contract is an agreement between two parties.
T or F - ✔✔False
✔✔Written auction contract - ✔✔Expressed
✔✔Auction contracts are usually assignable.
T or F - ✔✔False
✔✔A breach of contract situation occurs when - ✔✔A violation of terms of the contract
agreement occurs
✔✔Remedies for breach of contract may be - ✔✔Damages that are Compensatory,
punitive, nominal, or liquidated
✔✔Punitive damages for breach of contract - ✔✔Payment to punish the party breaching
the contract
✔✔When either the auctioneer of the seller violates the conditions of the contract either
party can be charged with breach of contract.
T or F? - ✔✔True
✔✔Failure to disclose agency relationship may lose your auction license.
T or F - ✔✔True
✔✔An oral contract may be permitted to establish agency relationships.
T or F - ✔✔False
✔✔Client - ✔✔The seller in an agency relationship
✔✔In a fiduciary relationship, the auctioneer is to place the welfare of their client ahead
of their own.
T or F - ✔✔True
✔✔An auctioneer may represent both the seller and buyer after full disclosure.
T or F - ✔✔True
, ✔✔Auctioneer is not responsive for wrongdoings of seller by disclosure of agency
relationship.
T or F - ✔✔True
✔✔Quickly dropping the bid to a friend is not a violation of the seller/agency
relationship.
T or F - ✔✔False
✔✔Auctioneer should it disclose any harmful information about the seller.
T or F - ✔✔True
✔✔Misrepresentation by the auctioneer on behalf of seller may cause civil and criminal
liability to the seller.
T or F - ✔✔True
✔✔Furnishing public information to the buyer may be violation of the agency
relationship.
T or F - ✔✔False
✔✔Duties of the seller include compensating the auctioneer according to terms of the
contract.
T or F - ✔✔True
✔✔An auction contract establishes a special agency relationship which is the same as a
power of attorney.
T or F - ✔✔True
✔✔Material misrepresentations made by and auctioneer constitute fraud.
T or F - ✔✔True
✔✔An auctioneer who designs with another (buyer) to defraud (seller) third party is
guilty if fraud.
T or F - ✔✔True
✔✔Operating in a negligent manner is a form of fraud.
T or F - ✔✔True
✔✔And attempt to fix commission is a violation of the Sherman-Clayton Act.
T or F - ✔✔True
✔✔An auctioneer may receive commission from both the seller and buyer but only with
full disclosure.
