NC Post Licensing - 302 - Contracts and Closing Exam
Questions And Verified Answers (Correct Answers)
Graded A+ | Newest Exam | Just Released !! 2026-2027
Contract: Fraud Elements
1) Willful Misrepresentation or Omissions of a past or existing Material
Fact, 2) Made with knowledge of falsity or in reckless disregard of its
truth, 3) Intentially to harm other party. Voidable by deceived party.
NOT AUTOMATIC
Contract: Unwillful Misrepresentation
An untrue representation by a party believing it to be true. May be basis
for contract rescission. Brokers SHOULD NOT make statements about
matters they are ignorant of.
Contract: Unfair or Deceptive Trade Practices
Includes: 1) Providing a misleading opinion or false inducement, 2)
Failing to disclose a Material Fact, 3) Misleading Advertising, 4)
Misrepresenting the nature or extent of a guarantee or warranty. This is
applied to BROKERS AND OWNERS WHO REGULARLY SELL REAL
ESTATE - NOT FSBO. Injured party is entiteled to Treble Damages.
,Contracts: Assignable?
Yes, so long as the contract doesn't contain language that prohibits or
limits the assignment. AssignEE is Primarily Liable, AssignOR remains
Secondary Liable.
Contract: Unfair or Deceptive Trade Practices - Duress
Overcoming the will of a person by violence or threat of violence.
Voidable by Injured Party through legal actions.
Contract: Unfair or Deceptive Trade Practices - Undue Influence
One person takes unfair advangtage of another person due to a close,
confidential or fiduciary relationship (parent-child, broker-client,
attorney-client). Voidable.
Contract: Unfair or Deceptive Trade Practices - Treble Damages
A statute that allows a court to award triple actual or compensatory
damages to plaintiffs in certain cases.
Contract: Addenda / Addendum
Additions to terms of the contract
, Contract: Admendment
A change to terms of the original Contract (after contract was signed).
Statue of Frauds
A state statute under which certain types of contracts must be in writing to be
enforceable. AGENCY AGREEMENTS, Employement Agreements, are not RE
Contracts. They are EXCLUDED from Statute of Frauds. (Commission rules
required these to be in writing).
Contract: Remedies for Breach Contract
Parties can be entitled to any of the following remedies: 1) Money
Damages to make injured party whole, 2) Consequential damages - A $ award
for damages that resulted from a foreseeable result of wrong
doing (rare in RE) , 3) Liquidated Damages - amount pre-determined in the
contract (EMD), 4) Specific Performance - One party sues other party to make
them perform (unique nature of property), 5) Rescission - Declares contract
invalid and returns parties to the position they were in prior to contract.
May be granted for: 1) Mutual Mistake of Fact, 2) Fraud or Misrepresentation,
3) Undue Influence or Duress
Questions And Verified Answers (Correct Answers)
Graded A+ | Newest Exam | Just Released !! 2026-2027
Contract: Fraud Elements
1) Willful Misrepresentation or Omissions of a past or existing Material
Fact, 2) Made with knowledge of falsity or in reckless disregard of its
truth, 3) Intentially to harm other party. Voidable by deceived party.
NOT AUTOMATIC
Contract: Unwillful Misrepresentation
An untrue representation by a party believing it to be true. May be basis
for contract rescission. Brokers SHOULD NOT make statements about
matters they are ignorant of.
Contract: Unfair or Deceptive Trade Practices
Includes: 1) Providing a misleading opinion or false inducement, 2)
Failing to disclose a Material Fact, 3) Misleading Advertising, 4)
Misrepresenting the nature or extent of a guarantee or warranty. This is
applied to BROKERS AND OWNERS WHO REGULARLY SELL REAL
ESTATE - NOT FSBO. Injured party is entiteled to Treble Damages.
,Contracts: Assignable?
Yes, so long as the contract doesn't contain language that prohibits or
limits the assignment. AssignEE is Primarily Liable, AssignOR remains
Secondary Liable.
Contract: Unfair or Deceptive Trade Practices - Duress
Overcoming the will of a person by violence or threat of violence.
Voidable by Injured Party through legal actions.
Contract: Unfair or Deceptive Trade Practices - Undue Influence
One person takes unfair advangtage of another person due to a close,
confidential or fiduciary relationship (parent-child, broker-client,
attorney-client). Voidable.
Contract: Unfair or Deceptive Trade Practices - Treble Damages
A statute that allows a court to award triple actual or compensatory
damages to plaintiffs in certain cases.
Contract: Addenda / Addendum
Additions to terms of the contract
, Contract: Admendment
A change to terms of the original Contract (after contract was signed).
Statue of Frauds
A state statute under which certain types of contracts must be in writing to be
enforceable. AGENCY AGREEMENTS, Employement Agreements, are not RE
Contracts. They are EXCLUDED from Statute of Frauds. (Commission rules
required these to be in writing).
Contract: Remedies for Breach Contract
Parties can be entitled to any of the following remedies: 1) Money
Damages to make injured party whole, 2) Consequential damages - A $ award
for damages that resulted from a foreseeable result of wrong
doing (rare in RE) , 3) Liquidated Damages - amount pre-determined in the
contract (EMD), 4) Specific Performance - One party sues other party to make
them perform (unique nature of property), 5) Rescission - Declares contract
invalid and returns parties to the position they were in prior to contract.
May be granted for: 1) Mutual Mistake of Fact, 2) Fraud or Misrepresentation,
3) Undue Influence or Duress
