Retake Recovery Practice Set Preview

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

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.

1. A.Executory
2. B.Executed
3. C.Void
4. D.Unilateral

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.

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

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.

1. A.Void, because consideration is missing entirely
2. B.Valid only if the buyer pays a deposit later
3. C.Valid, because mutual promises supply consideration
4. D.Voidable at the option of the seller

Why each choice works or fails

• A. Consideration is present in the promises the parties exchanged.
• B. The contract is binding when formed, not when a deposit arrives.
• C. Exchanged promises are themselves consideration.
• D. Nothing about the formation gives the seller a right to disaffirm.

Rule to remember: Earnest money is not required for a valid contract; exchanged promises are consideration.

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

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.

1. A.Liquidated damages
2. B.Compensatory damages
3. C.Rescission
4. D.Specific performance

Why each choice works or fails

• A. Liquidated damages are a preset sum of money, often the earnest money. That is a payment, not the house.
• B. Compensatory damages pay for the buyer's loss in money. Candidates pick it as the default remedy, but it does not deliver the property.
• C. Rescission cancels the contract and returns the parties to where they started, the opposite of what this buyer wants.
• D. Correct. Specific performance orders the seller to convey the property as agreed.

Rule to remember: Land is unique, so a court can order specific performance: the seller must convey, not just pay.

1. A.Voidable
2. B.Valid until challenged
3. C.Void
4. D.Unenforceable but valid

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.

1. A.The first contract terminates as provided
2. B.The first buyer completes her inspection
3. C.The listing agreement reaches its expiration
4. D.The backup buyer increases the offered price

Why each choice works or fails

• A. Termination of the first contract elevates the backup.
• B. Completing an inspection is a step toward closing, not a termination.
• C. Listing expiry does not end an existing purchase contract.
• D. Raising the price does not displace an existing contract.

Rule to remember: A backup contract becomes primary only when the first contract terminates under its own terms.