Florida Contracts Practice Questions and Answers
Real estate contracts is tied for the heaviest content area on the Florida exam at roughly 12 questions. It tests the four essentials of a valid contract, the Statute of Frauds, void versus voidable, assignment versus novation, and which remedy applies when a party breaches. Work the questions below, then read every explanation.
Exam prep only
Contracts is tied with brokerage activities for the most questions on the Florida exam. The questions are pattern-based once you see them enough. They give you a fact set and ask whether a contract exists, what kind it is, or what happens when someone breaks it.
Use The Elements-Then-Status Check: first confirm the four essentials are present, then classify the contract and its current status. Most traps live in the status, a counteroffer that quietly terminated the first offer, or a voidable contract a student calls void.
The questions below cover the patterns the exam repeats: the four essentials (competent parties, mutual assent, legal purpose, and consideration), the Statute of Frauds requirement that a sale of land be in writing, valid versus void versus voidable versus unenforceable, assignment versus novation, contingencies and the effect of a counteroffer, and the remedies when a party breaches, including specific performance and liquidated damages.
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Contracts Practice Questions
9 scenario-based questions on contracts, scored, each with a full explanation after you answer. Every question is also written out below if you would rather study at your own pace.
Every question explained
Prefer to study at your own pace? Here are all 9 questions. Read each one and pick your answer, then reveal the correct answer, the reasoning, and the trap that catches most candidates.
1. A buyer and seller shake hands on the sale of a vacant lot for $90,000. Nothing is put in writing. Before closing, the seller backs out. Can the buyer force the sale?
- A.Yes, because a verbal agreement on price and property is a binding contract
- B.Yes, because the buyer relied on the seller's promise
- C.No, because under the Statute of Frauds a contract for the sale of real property must be in writing to be enforceable
- D.No, because vacant land cannot be sold without a survey
Show answer and explanation
Correct answer: C. No, because under the Statute of Frauds a contract for the sale of real property must be in writing to be enforceable
Why C is correct: The Statute of Frauds requires that a contract for the sale of an interest in real property be in writing and signed by the party to be bound. An oral agreement to sell land is generally not enforceable in court, so the buyer cannot force the sale.
Trap: The oral contract is unenforceable, not automatically void. The parties could still choose to perform; a court just will not force it.
Source: F.S. 725.01, Statute of Frauds
2. Which set lists the four essential elements every valid contract must have?
- A.Earnest money, a licensed broker, a survey, and a closing date
- B.Competent parties, mutual assent (offer and acceptance), legal purpose, and consideration
- C.A written document, a notary, two witnesses, and recording
- D.Offer, counteroffer, acceptance, and contingency
Show answer and explanation
Correct answer: B. Competent parties, mutual assent (offer and acceptance), legal purpose, and consideration
Why B is correct: A valid contract requires competent parties, mutual assent through offer and acceptance, a legal purpose, and consideration. Real estate contracts must also satisfy the Statute of Frauds by being in writing and signed, but the four core essentials are competency, mutual assent, legality, and consideration.
Trap: Earnest money is not an essential element. Consideration is required, but the deposit itself is not.
Source: Florida contract law; F.S. 725.01
3. A buyer offers $320,000. The seller responds with a counteroffer at $335,000. The buyer then says, I accept your original $340,000 listing price. Does a binding contract exist?
- A.Yes, because the buyer agreed to a higher price than the seller asked in the counteroffer
- B.Yes, because the listing price is a standing offer the buyer can accept anytime
- C.No, because the seller's counteroffer terminated the buyer's original offer, and the buyer's statement accepting the listing price is itself a new offer the seller is free to accept or reject
- D.No, because the buyer already rejected the counteroffer, ending all negotiation permanently
Show answer and explanation
Correct answer: C. No, because the seller's counteroffer terminated the buyer's original offer, and the buyer's statement accepting the listing price is itself a new offer the seller is free to accept or reject
Why C is correct: When the seller countered, the buyer's original offer was terminated. A listing price is an invitation to negotiate, not an offer the buyer can accept. The buyer's statement accepting 340,000 is a brand-new offer that the seller is free to accept or reject.
Trap: A counteroffer kills the original offer. The buyer cannot reach back and accept something that is no longer on the table.
Source: Florida contract law, offer and acceptance
4. A 16-year-old signs a contract to buy a condominium. Under contract law, this agreement is
- A.void, because a minor has no legal capacity to contract
- B.voidable at the option of the minor, who may enforce it or disaffirm it
- C.valid and fully binding on the minor
- D.void, because real property cannot be sold to a minor
Show answer and explanation
Correct answer: B. voidable at the option of the minor, who may enforce it or disaffirm it
Why B is correct: A contract with a minor is voidable, not void. The minor may choose to enforce the contract or to disaffirm it. A void contract was never valid at all; a voidable contract is valid until the protected party elects to void it.
Trap: Void and voidable are different. A minor's contract is voidable, giving the minor the choice, not void.
Source: Florida contract law, capacity
5. A seller signs a valid contract to sell a unique waterfront home, then refuses to close because she received a higher offer. The buyer wants the house, not money. The remedy that forces the seller to complete the sale is
- A.liquidated damages
- B.specific performance
- C.rescission
- D.novation
Show answer and explanation
Correct answer: B. specific performance
Why B is correct: Specific performance is a remedy that forces a party to complete the agreed transaction, available because real property is considered unique and money damages may not make the buyer whole. The buyer who wants the property itself seeks specific performance.
Trap: Liquidated damages give money. Specific performance gives the property. Match the remedy to what the wronged party actually wants.
Source: Florida contract remedies
6. Buyer A assigns her purchase contract to Buyer B. Later, all three parties sign a new agreement that substitutes Buyer B for Buyer A entirely and releases Buyer A from any further liability. This release of the original party is accomplished through
- A.assignment
- B.novation
- C.rescission
- D.subrogation
Show answer and explanation
Correct answer: B. novation
Why B is correct: Novation substitutes a new party for an original party with the agreement of everyone involved, and it releases the original party from liability. A plain assignment transfers rights but usually leaves the assignor secondarily liable. The full release is what makes this a novation.
Trap: The dividing line is the release. Assignment moves the rights; novation moves the party and ends the original party's liability.
Source: Florida contract law, assignment and novation
7. For $2,000, a seller gives a buyer the right, but not the obligation, to purchase a property at a set price within 90 days. The seller must sell if the buyer exercises the right, but the buyer is not required to buy. This is
- A.a bilateral contract, because both parties make promises
- B.a unilateral option contract, because only the seller is bound to perform if the buyer chooses to exercise
- C.an exclusive right of sale listing
- D.a voidable contract, because only one party is obligated
Show answer and explanation
Correct answer: B. a unilateral option contract, because only the seller is bound to perform if the buyer chooses to exercise
Why B is correct: An option contract is unilateral. The seller (optionor) is bound to sell if the buyer (optionee) exercises the option, but the buyer is not obligated to buy. Only one party has made an enforceable promise to perform, which is what makes it unilateral.
Trap: An option is unilateral, not bilateral. The buyer holds a right, not an obligation, so only the seller is bound.
Source: Florida contract law, option contracts
8. A purchase contract states that if the buyer defaults, the seller keeps the earnest money as the agreed measure of damages. This clause is an example of
- A.specific performance
- B.liquidated damages
- C.punitive damages
- D.a novation clause
Show answer and explanation
Correct answer: B. liquidated damages
Why B is correct: A liquidated damages clause sets, in advance, the amount one party keeps if the other defaults. When a contract lets the seller retain the buyer's earnest money as the agreed damages on a buyer default, that is liquidated damages. The parties fixed the number ahead of time rather than proving actual loss.
Trap: Liquidated means agreed in advance. Do not confuse it with specific performance, which forces the sale rather than awarding money.
Source: Florida contract remedies
9. A signed purchase contract is contingent on the buyer obtaining a mortgage at no more than 7 percent within 30 days. The buyer applies in good faith but is denied financing, and the contingency period expires. What is the most likely result?
- A.The buyer forfeits the earnest money to the seller as liquidated damages
- B.The buyer may cancel and recover the earnest money, because the financing contingency was not satisfied
- C.The seller may sue the buyer for specific performance to force the purchase
- D.The contract automatically converts to an all-cash sale
Show answer and explanation
Correct answer: B. The buyer may cancel and recover the earnest money, because the financing contingency was not satisfied
Why B is correct: A financing contingency makes the buyer's obligation conditional on getting the loan described. When the buyer applies in good faith and the financing cannot be obtained within the contingency period, the condition fails. The buyer may cancel and the earnest money is returned. There is no buyer default, so the seller cannot keep the deposit or force the sale.
Trap: A failed contingency is not a default. The buyer recovers the deposit only when the contingency was genuine and the buyer acted in good faith, not when the buyer simply walks away.
Source: Florida contract law, contingencies
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Get the full question bankFrequently asked questions
How many contract questions are on the Florida real estate exam?+
Real estate contracts is about 12 percent of the 100-question Florida sales associate exam, tied with brokerage activities for the heaviest content area. Expect roughly 12 questions on contract essentials, the Statute of Frauds, classifications, and remedies.
What is the difference between a void and a voidable contract?+
A void contract was never legally valid and has no effect. A voidable contract is valid and enforceable until the protected party chooses to void it. A minor's contract is voidable, not void, because the minor can elect to enforce or disaffirm it.
Are these real Florida real estate exam questions?+
These are original, scenario-based questions written at the same format and difficulty as the Florida sales associate exam. They are not reproduced Pearson VUE exam items. Each answer cites the contract rule it tests.
What are the four essentials of a valid real estate contract?+
A valid contract requires competent parties, mutual assent (a clear offer and acceptance), a legal purpose, and consideration. A contract for the sale of land must also be in writing to be enforceable under the Statute of Frauds.
Does a Florida real estate sales contract have to be in writing?+
Yes. Under the Statute of Frauds, a contract for the sale of real property or any interest in land must be in writing and signed by the party to be charged to be enforceable. An oral agreement to pay a commission can bind a broker and seller, but the sale contract itself must be written.
What is the difference between assignment and novation?+
Assignment transfers a party's rights and duties under a contract to a third party, and the original party can remain secondarily liable. Novation substitutes a new party or a new contract for the original and releases the original party from liability, with the consent of all parties.