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This focused set tests Contracts at salesperson level. Answer first, then use the rule and explanation to diagnose why each option wins or fails. Answer this 5-question public preview here, then continue the complete experience in Pass Georgia.

Facts checked against the current PSI Candidate Information Bulletin and GREC sources.

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1 / 5Study mode: Contracts

Which event does NOT terminate an offer?

Filled circles are answered. A dot means marked for review. Choose a number to return and change an answer.

34% of the real exam is Georgia law. 52 of 152 questions.

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All 5 questions and explanations

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For a useful score, finish the test above before opening these answers. These are original practice questions based on published topics and sources.

1. Which event does NOT terminate an offer?Contracts. Open choices and explanation.
  1. A.The offeree asking whether the price is negotiable
  2. B.A counteroffer made by the offeree
  3. C.The lapse of the time stated in the offer
  4. D.The death of the offeror before acceptance

Answer A: The offeree asking whether the price is negotiable

A mere inquiry about terms is not a rejection, so the offer stays open. A counteroffer rejects the original offer, an offer ends when its stated time lapses, and the death of either party before acceptance ends it. Asking "would you take less?" keeps the offer alive; saying "I will pay less" kills it and substitutes a counteroffer.

Why each choice works or fails

  • A. Correct. An inquiry is not a rejection, so the offer survives it.
  • B. A counteroffer rejects the original offer and ends it.
  • C. An offer expires when its stated time runs out.
  • D. Death of either party before acceptance terminates the offer.

Rule to remember: An inquiry about terms leaves an offer open; a counteroffer, lapse, or death before acceptance ends it.

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2. Ruben Salas, a buyer's agent, gets an email from the closing attorney's address changing the wire instructions the day before closing. Ruben should:Contracts. Open choices and explanation.
  1. A.Verify by phone using a previously known number
  2. B.Follow the new instructions since the address matches
  3. C.Forward it to the buyer to handle personally
  4. D.Reply to the email asking for confirmation

Answer A: Verify by phone using a previously known number

Sender addresses are trivially spoofed and email accounts are frequently compromised, so the display address proves nothing. Calling a number obtained earlier from an independent source breaks the attacker's control of the channel. Replying does not, because the reply goes to the attacker.

Why each choice works or fails

  • A. Correct. Out-of-band verification defeats a compromised email channel.
  • B. A matching address is exactly what a spoofed message shows.
  • C. Handing a suspected fraud to the buyer unverified leaves the risk in place.
  • D. A reply travels the same compromised channel to the attacker.

Rule to remember: Verify any change to wire instructions by calling a phone number you already had, never one in the email.

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3. A buyer and seller have both signed a purchase agreement, and closing is set for next month. Until closing, the contract is best described as:Contracts. Open choices and explanation.
  1. A.Executory
  2. B.Executed
  3. C.Void
  4. D.Unilateral

Answer A: Executory

A contract stays executory while any party still has something left to do. Here both sides still owe performance at closing, so the contract is executory; it becomes executed once everyone has fully performed.

Why each choice works or fails

  • A. Correct. Obligations remain to be performed, so the contract is executory.
  • B. Executed means every party has fully performed, which happens at closing.
  • C. Nothing suggests missing capacity, illegality, or another defect.
  • D. A purchase agreement exchanges promises on both sides, so it is bilateral.

Rule to remember: Executed means everybody has performed. Anything less is executory.

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4. A contract clause states that time is of the essence. This means:Contracts. Open choices and explanation.
  1. A.Deadlines are strictly enforceable
  2. B.The contract expires in 30 days
  3. C.Either party may extend deadlines once
  4. D.Only the closing date is binding

Answer A: Deadlines are strictly enforceable

A time-is-of-the-essence clause makes timely performance material. Missing an applicable deadline can be a breach. The parties may still agree to an extension or waive a deadline; the clause itself does not provide an automatic extension.

Why each choice works or fails

  • A. Correct. The clause makes each stated deadline a material term.
  • B. Misconception: the clause sets a term. It sets no expiration date of its own.
  • C. The clause gives neither party an automatic right to extend a deadline. An agreed extension is a separate matter.
  • D. Misconception: only closing counts. The clause applies to every stated deadline.

Rule to remember: Time is of the essence turns every deadline into a material term.

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5. A contract to commit an unlawful act is:Contracts. Open choices and explanation.
  1. A.Voidable
  2. B.Valid until challenged
  3. C.Void
  4. D.Unenforceable but valid

Answer C: Void

Illegality destroys the legal-purpose element, so no contract ever formed. Courts will not enforce it, will not reform it, and generally will not help either party recover what they put in.

Why each choice works or fails

  • A. Voidable implies a valid contract, which illegality prevents.
  • B. It was never valid, so it does not await a challenge.
  • C. An unlawful object means no contract came into existence.
  • D. The agreement is not merely unenforceable but a nullity.

Rule to remember: An agreement to do something illegal is void; it lacks the legal-purpose element from the start.

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What does this assessment cover?

Validity, enforceability, Statute of Frauds, offer and acceptance, void and voidable agreements, bilateral and unilateral contracts, options, performance, breach, remedies, addenda, amendments, contingencies, leases, multiple offers, and counteroffers.
Question coverage in this assessment
Official content areaPublished weightQuestions hereComplete lesson
Contracts19% of the national portion5Study Contracts

The Georgia-specific distinction

Georgia purchase forms may use a negotiated due diligence period, but the national contract rules still decide offer, acceptance, consideration, capacity, legality, performance, breach, and remedies.

Worked result example

A seller signs an offer after changing the closing date. The change rejects the original offer and creates a counteroffer. A signature alone does not create acceptance when a term changed.

Common exam traps

  • Treating a counteroffer as acceptance.
  • Calling a voidable agreement void.
  • Confusing an amendment with an addendum.
  • Assuming recording makes a contract valid.

Ready to move on?

  1. Score the set before opening notes.
  2. Explain the winning rule without repeating the answer choice.
  3. Classify every miss as knowledge, distinction, wording, math setup, or timing.
  4. Repair the weakest official area, then answer a fresh set on another day.
  5. Move on only when the result is stable and guesses are being marked as gaps.

Recommended next lesson

Open the complete lesson hub. Use the result above to choose the first lesson or drill rather than following a generic order.

Assessment integrity

The questions are original and mapped to the current PSI outline. This preview introduces the assessment; the complete version is in Pass Georgia. PSI says practice exams help candidates become familiar with general question types, but they do not replace education and a good practice score does not guarantee an examination outcome. This page reports evidence, not a pass probability.

About this practice set

Facts checked against the current PSI Candidate Information Bulletin and GREC sources.

Are these actual PSI exam questions?

No. Every item is original, written from the current published outline and primary sources. No question is copied, recalled, reconstructed, or represented as a live PSI item.

Does this score predict whether I will pass?

No. One practice result is evidence about this question sample. Use the area breakdown, review guesses as well as misses, and confirm improvement with fresh questions on another day.

What should I do after the result?

Open the explanation for every miss and guess, restate the rule, use the linked repair lesson, then continue with the next lesson: Open the complete lesson hub.

Is the assessment free?

Yes. This 5-question preview has no email gate, account requirement, or card. The complete assessment, saved mastery, spaced review, and adaptive recommendations are in Pass Georgia.