CHAMPIONS LAW OF CONTRACTS TEST PAPER 2025/2026
QUESTIONS WITH ANSWERS GRADED A+
✔✔These court judgments are referred to as __________ and used as guidance in
common law. - ✔✔Precedents
✔✔What is the body of laws and regulations enacted by federal and state legislatures? -
✔✔Statutory Law
✔✔These rights extend above the surface without limitation... - ✔✔Air Rights
✔✔These rights allow an owner to develop the surface, and to use resources extracted
from or near the surface including stone, gravel, water, and limestone. - ✔✔Surface
Rights
✔✔These rights include oil, gas and other minerals, and are commonly conveyed
through a lease, mineral deed or by reservation. - ✔✔Subsurface Rights
✔✔This characteristic of land refers to the fact that land cannot be destroyed. -
✔✔Indestructibility
✔✔This characteristic of land refers to the fact that land cannot be moved. -
✔✔Immobility
✔✔This characteristic of land refers to the fact no two parcels of land are the same. -
✔✔Nonhomogeneity
✔✔Economic characteristics include... - ✔✔Scarcity, Modifications, Fixity, Situs
✔✔...comes from the theory of supply and demand - ✔✔Scarcity
✔✔...refers to the fact that value is affected by man-made changes to the land. -
✔✔Modifications
✔✔...refers to the fact that land, and additions to the land, take long periods of time to
pay for themselves. - ✔✔Fixity
✔✔...refers to the location of the property or land from an economic, not geographic,
view point. - ✔✔Situs
✔✔...is a venture that is owned by a single individual. - ✔✔Sole Proprietorship
, ✔✔An owner within a cooperative own how many specific units? - ✔✔Zero Units
✔✔These members buy shares in a corporation and do not own specific units within a
building... - ✔✔Cooperative Owners
✔✔...is an agreement between two or more parties to do something or to refrain from
doing something. - ✔✔Contract
✔✔In bilateral contract, which parties are obligated to perform the stated terms? -
✔✔Selling and buying parties must perform.
✔✔In a unilateral contract, which party is obligated to perform the stated terms? -
✔✔Selling party.
✔✔A seller, in exchange for some form of consideration (fee), gives the buyer the right
to purchase the property at a preset price for a period of time. This is known as... -
✔✔An option.
✔✔In order for a contract to be valid and enforceable, both parties must be... -
✔✔Competent
✔✔This term, often referred to as 'mutual consent' or 'meeting of the minds' is required
for a contract to be valid and enforceable... - ✔✔Offer and acceptance.
✔✔What type of purpose must a contract have to be valid and enforceable? - ✔✔Legal
purpose.
✔✔A contract for the conveyance of an interest in real estate or lease for a term of more
than one year must be... - ✔✔In writing.
✔✔...,defined as something given in exchange for a promise, is required in order for a
contract to be valid and enforceable. - ✔✔Consideration.
✔✔A contract that is binding on the parties, with one or more of the parties having
contractual duties that have not yet been performed. - ✔✔Executory Contract.
✔✔When a sale finally closes, the contract is said to be... - ✔✔Fully executed.
✔✔..., which means that both parties remain liable beyond closing for their
representations made in the contract. - ✔✔'Survive closing'
QUESTIONS WITH ANSWERS GRADED A+
✔✔These court judgments are referred to as __________ and used as guidance in
common law. - ✔✔Precedents
✔✔What is the body of laws and regulations enacted by federal and state legislatures? -
✔✔Statutory Law
✔✔These rights extend above the surface without limitation... - ✔✔Air Rights
✔✔These rights allow an owner to develop the surface, and to use resources extracted
from or near the surface including stone, gravel, water, and limestone. - ✔✔Surface
Rights
✔✔These rights include oil, gas and other minerals, and are commonly conveyed
through a lease, mineral deed or by reservation. - ✔✔Subsurface Rights
✔✔This characteristic of land refers to the fact that land cannot be destroyed. -
✔✔Indestructibility
✔✔This characteristic of land refers to the fact that land cannot be moved. -
✔✔Immobility
✔✔This characteristic of land refers to the fact no two parcels of land are the same. -
✔✔Nonhomogeneity
✔✔Economic characteristics include... - ✔✔Scarcity, Modifications, Fixity, Situs
✔✔...comes from the theory of supply and demand - ✔✔Scarcity
✔✔...refers to the fact that value is affected by man-made changes to the land. -
✔✔Modifications
✔✔...refers to the fact that land, and additions to the land, take long periods of time to
pay for themselves. - ✔✔Fixity
✔✔...refers to the location of the property or land from an economic, not geographic,
view point. - ✔✔Situs
✔✔...is a venture that is owned by a single individual. - ✔✔Sole Proprietorship
, ✔✔An owner within a cooperative own how many specific units? - ✔✔Zero Units
✔✔These members buy shares in a corporation and do not own specific units within a
building... - ✔✔Cooperative Owners
✔✔...is an agreement between two or more parties to do something or to refrain from
doing something. - ✔✔Contract
✔✔In bilateral contract, which parties are obligated to perform the stated terms? -
✔✔Selling and buying parties must perform.
✔✔In a unilateral contract, which party is obligated to perform the stated terms? -
✔✔Selling party.
✔✔A seller, in exchange for some form of consideration (fee), gives the buyer the right
to purchase the property at a preset price for a period of time. This is known as... -
✔✔An option.
✔✔In order for a contract to be valid and enforceable, both parties must be... -
✔✔Competent
✔✔This term, often referred to as 'mutual consent' or 'meeting of the minds' is required
for a contract to be valid and enforceable... - ✔✔Offer and acceptance.
✔✔What type of purpose must a contract have to be valid and enforceable? - ✔✔Legal
purpose.
✔✔A contract for the conveyance of an interest in real estate or lease for a term of more
than one year must be... - ✔✔In writing.
✔✔...,defined as something given in exchange for a promise, is required in order for a
contract to be valid and enforceable. - ✔✔Consideration.
✔✔A contract that is binding on the parties, with one or more of the parties having
contractual duties that have not yet been performed. - ✔✔Executory Contract.
✔✔When a sale finally closes, the contract is said to be... - ✔✔Fully executed.
✔✔..., which means that both parties remain liable beyond closing for their
representations made in the contract. - ✔✔'Survive closing'
