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California Contracts — Printable Practice Pack
California state portion · the Business and Professions Code, DRE trust-fund rules and California's disclosure regime · 20 questions · Answer key on the last page · agentexamcoach.com
1.Which contract is enforceable despite no writing?
(A)A lease for eleven months
(B)A listing agreement for a house
(C)A two-year commercial lease
(D)A sale of a vacant lot
2.A seller and buyer agree to extend closing by 10 days but never sign an extension. Closing day passes. What is the position?
(A)The oral extension is fully binding on both of the parties
(B)The escrow holder decides whether the extension is valid
(C)The contract automatically extends for a reasonable period
(D)Either may be in breach — oral extensions are risky; the writing controls
3.A tenant assigns the lease with landlord consent and the assignee defaults. Who is liable?
(A)No one, since consent was given
(B)The original tenant remains liable unless released
(C)Only the assignee
(D)Only the landlord
4.A buyer makes an offer with a 3 p.m. Friday expiration. The seller signs at 2 p.m. Friday but the listing agent does not deliver the acceptance to the buyer's agent until Saturday. Is there a contract?
(A)No — acceptance must be communicated before the offer expires, and delivery came too late
(B)No — because acceptances must be delivered on a business day
(C)Yes — the seller signed before the deadline, which is all that is required
(D)Yes — because the delay was the listing agent's fault rather than the seller's
5.A purchase agreement provides that the buyer's deposit is retained if the buyer defaults. What is that clause?
(A)A liquidated damages provision
(B)A penalty clause, always void
(C)A specific performance clause
(D)An arbitration provision
6.A contract for an illegal purpose is best described as which of these?
(A)Voidable by either party
(B)Valid until challenged
(C)Enforceable if performed
(D)Void and unenforceable
7.A buyer transfers contract rights to a friend but stays liable if the friend defaults. What has occurred?
(A)A novation of the contract
(B)An assignment of the contract
(C)An accord and satisfaction
(D)A rescission by agreement
8.Which agreement must be in writing to be enforceable under the statute of frauds?
(A)An agreement to sell real property
(B)A one-month equipment hire
(C)A month-to-month residential tenancy
(D)An oral agreement to paint a fence
9.Which lease provision raises rent periodically by reference to an external measure?
(A)A percentage clause
(B)A subordination clause
(C)A recapture clause
(D)An escalation clause
10.A seller knowingly accepts late performance without objection. What has the seller likely done?
(A)Committed an anticipatory breach
(B)Rescinded the agreement altogether
(C)Waived the right to insist on that term
(D)Novated the contract with a new one
11.A buyer's agent transmits an acceptance but the seller had already faxed a revocation to the buyer. Which governs?
(A)An acceptance always defeats a revocation
(B)Revocation is effective the moment it is sent
(C)Neither is effective without notarisation
(D)Revocation is effective when RECEIVED, so timing decides it
12.Which clause in a lease requires the tenant to pay rent even if the premises are damaged?
(A)A holdover clause that imposes higher rent after the term
(B)A quiet enjoyment clause that protects the tenant's use
(C)A standard acceleration clause that calls all the rent due
(D)One to resist — rent normally abates when premises are untenantable
13.Which is required for a valid assignment of a purchase contract?
(A)The seller must countersign the assignment document
(B)The original buyer must first be released from liability
(C)The escrow holder must approve the substitution
(D)The contract must not prohibit it; a writing is prudent
14.Which listing gives the broker a commission unless the owner personally finds the buyer?
(A)Exclusive right to sell listing
(B)Net listing
(C)Open listing
(D)Exclusive agency listing
15.A contract includes a clause that the buyer 'accepts the property in its present condition.' Does this eliminate the seller's TDS duty?
(A)Yes — provided the buyer initials the as-is clause
(B)Yes — an as-is clause removes every disclosure requirement
(C)Only for cosmetic defects, not structural ones
(D)No — statutory disclosure duties cannot be waived by an as-is clause
16.A buyer in a land contract defaults after paying 60% of the price. What protection does California give?
(A)None — every payment made is forfeited to the seller
(B)Courts limit forfeiture; the vendee may recover equity beyond damages
(C)The seller must refund every dollar the buyer paid
(D)The buyer keeps the property despite the default
17.The seller cannot deliver clear title by the closing date through no fault of their own, and the contract has no cure provision. What is the buyer's basic choice?
(A)Terminate and recover the deposit, or waive and proceed
(B)Record the contract and take possession anyway
(C)Force the title insurer to insure over everything
(D)Sue for punitive damages automatically
18.Buyer and seller each sign separate identical copies of the agreement. What provision permits this?
(A)A counterparts clause
(B)A defeasance clause
(C)A contingency clause
(D)A subordination clause
19.Under a California land contract (installment sale), who holds equitable title during the payment period?
(A)The lender
(B)The vendor (seller)
(C)The vendee (buyer)
(D)The escrow holder
20.What distinguishes a lease from a licence to use property?
(A)A lease is always shorter than a licence
(B)A lease need not be in writing to be valid
(C)A lease conveys exclusive possession for a term
(D)A lease may be revoked at any moment
Answer key & explanations
1. A — Leases of one year or less fall outside the statute of frauds.
2. D — Modifications should be in writing; relying on oral extensions invites dispute.
3. B — Assignment transfers the interest but not the original tenant's liability without a novation/release.
4. A — Acceptance is effective on communication to the offeror; signing alone is insufficient.
5. A — A clause fixing damages in advance is a liquidated damages provision, enforceable where the amount is a reasonable pre-estimate rather than a penalty.
6. D — A contract with an unlawful object is void from the outset and cannot be enforced by either party.
7. B — An assignment transfers rights but leaves the assignor liable. A novation substitutes a new party and releases the original.
8. A — Agreements for the sale of real property, and agreements to pay compensation for such a sale, must be in writing to be enforceable.
9. D — An escalation clause adjusts rent by an index or formula so the landlord's return keeps pace.
10. C — A waiver is the voluntary relinquishment of a known right, and accepting late performance can waive a timing requirement.
11. D — Revocation takes effect on receipt; acceptance on dispatch — whichever became effective first controls.
12. D — Rent normally abates if premises become untenantable through no tenant fault; a clause to the contrary is unusual.
13. D — Rights are generally assignable unless the contract forbids it; the assignor remains liable absent release.
14. D — Under an exclusive agency listing the broker is the only agent, but the owner may sell personally without owing a commission.
15. D — As-is affects repairs, not the duty to disclose known material facts.
16. B — California restricts harsh forfeiture of a vendee's equity.
17. A — Failure of a condition lets the buyer walk with restitution or waive the defect and close.
18. A — A counterparts clause provides that separately signed copies together form one binding agreement.
19. C — The vendee has equitable title and possession; legal title remains with the vendor until paid.
20. C — A lease grants an estate with exclusive possession, while a licence is only a revocable personal privilege to use.
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