Florida Contracts Practice Questions and Answers

Read each question at your own pace, then reveal the correct answer, the reasoning, and the trap that catches most candidates.

1. 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. 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. 3. A buyer offers $320,000 and leaves the offer open until Friday. On Tuesday, the seller counters at $335,000. On Wednesday, the buyer tries to accept the original $320,000 offer. Is the seller bound at $320,000?

   • A.Yes, because the buyer accepted before the Friday deadline
   • B.Yes, because only the buyer can terminate the buyer's own offer
   • C.No, because the seller's counteroffer rejected and terminated the original offer
   • D.No, because a buyer may never revive negotiations after a counteroffer
   ▸Show answer and explanation

   Correct answer: C. No, because the seller's counteroffer rejected and terminated the original offer

   Why C is correct: A counteroffer operates as a rejection of the original offer and proposes new terms. The Friday deadline does not preserve the $320,000 offer after the seller countered. The buyer's Wednesday statement can function only as a new $320,000 offer, which the seller may accept or reject.

   Trap: An expiration date matters only while the offer remains alive. A counteroffer terminates it before that date.

   Source: Florida common law of offer and acceptance

4. 4. A sales associate is helping the parties complete a standard purchase contract in a transaction the associate handled. Which action stays within the licensee's permitted role?

   • A.Draft a custom clause that decides a disputed legal right
   • B.Select the remedy that gives the buyer the strongest legal position
   • C.Complete the form's factual blanks without giving legal advice or charging a separate drafting fee
   • D.Prepare the deed and mortgage because they arise from the same sale
   ▸Show answer and explanation

   Correct answer: C. Complete the form's factual blanks without giving legal advice or charging a separate drafting fee

   Why C is correct: Florida permits a real estate licensee to complete a sale contract as an incident to the licensed transaction. The licensee may fill factual blanks and communicate the parties' choices, but may not give legal advice, resolve legal rights, or draft custom legal language beyond the authorized role. Deeds and mortgages require a lawyer unless another narrow legal exception applies.

   Trap: Permission to complete a sale contract is limited. It does not turn a real estate license into authority to practice law.

   Source: Keyes Co. v. Dade County Bar Ass'n, 46 So. 2d 605 (Fla. 1950)

5. 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 an equitable remedy that may require a party to complete the promised conveyance. Real property is treated as unique, so money alone may not give the buyer the benefit of the bargain. Under the 2026 Florida Statutes, an action for specific performance generally must be commenced within one year.

   Trap: The requested outcome controls the answer. A buyer seeking the property itself is asking for specific performance, not a money remedy.

   Source: F.S. 95.11(6)(a), specific performance

6. 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: A novation replaces an original party or obligation with the consent required for the substitution and releases the original party. An assignment transfers contractual rights, while related duties may be delegated. Neither step alone proves that the other contracting party released Buyer A. The express three-party release does.

   Trap: Look for consent and release. An assignment can transfer rights without erasing the assignor's potential liability.

   Source: Florida common law of assignment and novation

7. 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. 8. A seller is about to sign a contract to sell a Florida single-family home. When must the seller provide the statutory residential flood disclosure to the buyer?

   • A.Only if the property is in a FEMA special flood hazard area
   • B.At or before the time the sales contract is executed
   • C.Within three business days after contract acceptance
   • D.At closing, together with the deed
   ▸Show answer and explanation

   Correct answer: B. At or before the time the sales contract is executed

   Why B is correct: Florida requires the seller of residential real property to complete and provide the statutory flood disclosure at or before contract execution. The form addresses known flood damage, flood-related insurance claims, and federal assistance. The duty is not limited to homes already mapped in a particular flood zone.

   Trap: This is a pre-contract disclosure. Waiting until closing is too late, and the statute does not make the duty depend on a flood-zone label.

   Source: F.S. 689.302

9. 9. A signed contract says the buyer may cancel and recover the deposit if, after a good-faith application, the buyer cannot obtain a mortgage at no more than 7 percent within 30 days. The lender denies the loan despite the buyer's timely cooperation. What is the result under that clause?

   • 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: The contract expressly makes the buyer's duty conditional on obtaining the described financing and states the consequence of a good-faith failure. Because the buyer complied and the condition failed, the buyer may cancel and recover the deposit. Florida law also permits a broker holding the escrow to return it when a buyer in good faith fails to satisfy a financing clause.

   Trap: Never assume every financing clause works the same way. Read the application, notice, timing, and refund language given in the question.

   Source: Contract terms; F.S. 475.25(1)(d)1.

10. 10. A buyer and seller agree to conduct their transaction electronically and sign the purchase contract through a recognized electronic-signature platform. Is the contract unenforceable solely because the signatures are electronic?

    • A.Yes, because every Florida real estate sale contract requires wet-ink signatures
    • B.Yes, unless a notary watches both parties sign in person
    • C.No, because an electronic record and signature can satisfy writing and signature requirements when the governing conditions are met
    • D.No, but only when the purchase price is below $500,000
    ▸Show answer and explanation

    Correct answer: C. No, because an electronic record and signature can satisfy writing and signature requirements when the governing conditions are met

    Why C is correct: Florida's Uniform Electronic Transaction Act provides that a record, signature, or contract may not be denied legal effect solely because it is electronic. When the parties have agreed to transact electronically, an electronic record can satisfy a writing requirement and an electronic signature can satisfy a signature requirement.

    Trap: Electronic form does not erase other contract requirements. The agreement still needs valid terms, attribution, and compliance with any law that applies to the transaction.

    Source: F.S. 668.50(5) and (7), Uniform Electronic Transaction Act

11. 11. A 17-year-old signs a contract to buy nonessential vacant land without a guardian acting for the minor. Under the general Florida contract rule, the agreement is

    • A.void from the beginning and incapable of ratification
    • B.voidable by the minor, rather than automatically void
    • C.fully enforceable against the minor because real estate is involved
    • D.unenforceable by either party only until the minor turns 21
    ▸Show answer and explanation

    Correct answer: B. voidable by the minor, rather than automatically void

    Why B is correct: Florida generally treats a minor's nonessential contract as voidable, not automatically void. That means the protected minor may disaffirm it, subject to recognized exceptions and the rules governing ratification. The other adult party does not receive the same unilateral right to avoid the agreement merely because the other signer is a minor.

    Trap: Void and voidable are not synonyms. A voidable agreement remains capable of being affirmed or avoided by the protected party.

    Source: Lee v. Thompson, 168 So. 848 (Fla. 1936)

12. 12. Before signing a contract, a Florida home seller knows that a concealed roof defect causes serious leaks during heavy rain. The defect materially affects value, is not readily observable, and is unknown to the buyer. The seller must

    • A.remain silent because Florida follows caveat emptor for every residential sale
    • B.disclose the known material fact to the buyer
    • C.disclose it only if the buyer orders a roof inspection
    • D.wait until after closing and notify the buyer in writing
    ▸Show answer and explanation

    Correct answer: B. disclose the known material fact to the buyer

    Why B is correct: Under Johnson v. Davis, a residential seller who knows of a fact that materially affects the property's value, is not readily observable, and is not known to the buyer must disclose it. A concealed defect that causes serious leaks fits the facts the rule is designed to address.

    Trap: An as-is clause or the buyer's inspection opportunity does not create a safe answer when the question gives all elements of the Johnson disclosure duty.

    Source: Johnson v. Davis, 480 So. 2d 625 (Fla. 1985)