1|Page
LAW OF CONTRACT EXAM NEWEST 2025
ACTUAL EXAM COMPLETE 150 QUESTIONS
AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
What kind of law is handed down by the legislature?
A) Agency Law
B) Common Law
C) TREC
D) Statutory Law - ANSWER-D) Statutory Law
For a sum of money negotiated between the parties, the buyer
has a time period, stated in this paragraph, for the "unrestricted
right" to terminate. Which paragraph does this reference?
A) Sales price paragraph
B) Earnest money paragraph
C) Option money paragraph
D) Repairs escrow paragraph - ANSWER-C) Option money
paragraph
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The ___________________ is the contractual agreement to
repay the debt.
A) Mortgage
B) Deed of Trust
C) Deed
D) Note - ANSWER-D) Note
Once the counteroffer is made, the initial offer is dead and
cannot be revived without written consent from the buyer.
A) True
B) False - ANSWER-A) True
An agency relationship which is created after the fact when the
principle agrees to be bound by the actions of another person
who is acting without authority is called:
A) Agency by ratification
B) Implied agency
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C) Expressed oral agency
D) Expressed written agency - ANSWER-A) Agency by
ratification
A seller conveys personal property with a:
A) Deed
B) Bill of Sale
C) Deed of Trust
D) Nothing is required - ANSWER-B) Bill of Sale
This is a communication that gives the listener the power to
conclude a contract.
A) Representation
B) Acceptance
C) Offer
D) Disclosure - ANSWER-wrong B) Acceptance
With this lease, the tenant pays a fixed amount of rent to the
landlord.
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A) Net lease
B) Percentage lease
C) Gross lease
D) Ground lease - ANSWER-C) Gross lease
A leasehold estate and a non-freehold estate are the same.
A) True
B) False - ANSWER-A) True
The act is about closing costs and settlement procedures.
A) RESPA
B) ECOA
C) TRELA
D) Fair credit act - ANSWER-A) RESPA
Title flaws must be dealt with, property taxes must be current
and outstanding mortgages and judgments must be resolved
before
LAW OF CONTRACT EXAM NEWEST 2025
ACTUAL EXAM COMPLETE 150 QUESTIONS
AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
What kind of law is handed down by the legislature?
A) Agency Law
B) Common Law
C) TREC
D) Statutory Law - ANSWER-D) Statutory Law
For a sum of money negotiated between the parties, the buyer
has a time period, stated in this paragraph, for the "unrestricted
right" to terminate. Which paragraph does this reference?
A) Sales price paragraph
B) Earnest money paragraph
C) Option money paragraph
D) Repairs escrow paragraph - ANSWER-C) Option money
paragraph
,2|Page
The ___________________ is the contractual agreement to
repay the debt.
A) Mortgage
B) Deed of Trust
C) Deed
D) Note - ANSWER-D) Note
Once the counteroffer is made, the initial offer is dead and
cannot be revived without written consent from the buyer.
A) True
B) False - ANSWER-A) True
An agency relationship which is created after the fact when the
principle agrees to be bound by the actions of another person
who is acting without authority is called:
A) Agency by ratification
B) Implied agency
,3|Page
C) Expressed oral agency
D) Expressed written agency - ANSWER-A) Agency by
ratification
A seller conveys personal property with a:
A) Deed
B) Bill of Sale
C) Deed of Trust
D) Nothing is required - ANSWER-B) Bill of Sale
This is a communication that gives the listener the power to
conclude a contract.
A) Representation
B) Acceptance
C) Offer
D) Disclosure - ANSWER-wrong B) Acceptance
With this lease, the tenant pays a fixed amount of rent to the
landlord.
, 4|Page
A) Net lease
B) Percentage lease
C) Gross lease
D) Ground lease - ANSWER-C) Gross lease
A leasehold estate and a non-freehold estate are the same.
A) True
B) False - ANSWER-A) True
The act is about closing costs and settlement procedures.
A) RESPA
B) ECOA
C) TRELA
D) Fair credit act - ANSWER-A) RESPA
Title flaws must be dealt with, property taxes must be current
and outstanding mortgages and judgments must be resolved
before
