California · state portion

Free California Contracts practice questions

10 original questions with full explanations. 18 of the 150 scored exam questions (about 12%) come from this area.

1. 1

   A buyer signs an offer but dies before the seller accepts. What happens to the offer?

   • A. It stays open for thirty days
   • B. The buyer's agent may accept for them
   • C. It is revoked by operation of law
   • D. The estate must complete the purchase
   Show answer & explanation

   Answer: C

   The death or incapacity of the offeror before acceptance terminates the offer by operation of law.

2. 2

   A lease says rent is due on the 1st with a 5-day grace period. On the 7th, what may the landlord serve?

   • A. A 60-day notice
   • B. An unlawful detainer complaint immediately
   • C. A 30-day notice to vacate
   • D. A three-day notice to pay or quit
   Show answer & explanation

   Answer: D

   After default, the first step is the three-day notice; unlawful detainer follows if unpaid.

3. 3

   A landlord's failure to repair makes the unit uninhabitable and the tenant leaves. What has occurred?

   • A. Surrender by agreement
   • B. Abandonment
   • C. Actual eviction
   • D. Constructive eviction
   Show answer & explanation

   Answer: D

   Constructive eviction occurs where the landlord's breach makes the premises unusable and the tenant vacates as a result.

4. 4

   Which landlord action is prohibited self-help in California?

   • A. Changing the locks to force a tenant out
   • B. Sending a rent reminder
   • C. Serving a three-day notice
   • D. Filing an unlawful detainer
   Show answer & explanation

   Answer: A

   Lockouts, utility shutoffs, and removing doors are unlawful; eviction requires court process.

5. 5

   An option to purchase is recorded. The optionor sells to a third party during the option period. What is the result?

   • A. The optionee loses all rights under the option contract
   • B. The third party takes title subject to the recorded option
   • C. The option is extinguished by the sale to the third party
   • D. The sale to the third party is void from the outset
   Show answer & explanation

   Answer: B

   Recording gives notice; purchasers take subject to recorded interests.

6. 6

   What distinguishes a novation from an assignment?

   • A. A novation must be recorded
   • B. An assignment needs court approval
   • C. An assignment requires consideration
   • D. A novation releases the original party
   Show answer & explanation

   Answer: D

   A novation substitutes a new obligation or party with the creditor's consent and discharges the original party, which an assignment does not do.

7. 7

   A landlord and tenant agreed orally to a nine-month lease. The tenant leaves after three months and the landlord sues thirty months later. What is the likely result?

   • A. Allowed — oral leases carry a four-year limitation period
   • B. Allowed — lease claims have no limitation period at all
   • C. Barred — oral leases are unenforceable from the start
   • D. Barred — the two-year limit for oral contracts has passed
   Show answer & explanation

   Answer: D

   A nine-month lease is enforceable orally, but claims on oral contracts must be brought within two years.

8. 8

   What does a 'time is of the essence' clause make of a one-day delay in tendering closing funds?

   • A. A permissible grace period of up to ten days
   • B. A potential material breach rather than a trivial one
   • C. A matter escrow may excuse without the parties
   • D. An automatic extension for weekend closings
   Show answer & explanation

   Answer: B

   The clause elevates deadlines to material terms, so even short delays can constitute breach.

9. 9

   Which requirement applies for a liquidated damages clause to bind in a residential purchase?

   • A. Court approval before escrow may close
   • B. Separate signature or initials by both parties on the provision
   • C. Notarisation of the entire purchase agreement
   • D. A deposit of at least ten percent held in escrow
   Show answer & explanation

   Answer: B

   The clause must be separately signed or initialled in the statutory format to be enforceable.

10. 10

    Which clause states that the written document contains the parties' entire agreement?

    • A. An acceleration clause
    • B. A severability clause
    • C. An integration clause
    • D. A subordination clause
    Show answer & explanation

    Answer: C

    An integration or merger clause confirms the writing is complete, reinforcing the parol evidence rule.