Alaska Practice TestContracts

Alaska Contracts
Practice Questions & Answers (2026)

Contract law questions on the Alaska real estate exam test both general contract principles and Alaska-specific transaction requirements. The Alaska Real Estate Commission tests how Alaska contract law applies to purchase agreements, counteroffers, contingencies, and earnest money disputes. Pay close attention to offer and acceptance mechanics, how counteroffers extinguish prior offers, and the specific timelines under Alaska law for earnest money handling and contingency resolution. These are areas where candidates who studied nationally often apply the right concept but the wrong AK-specific timeframe or rule.

Practice Questions

Alaska Contracts — Practice Questions & Answers

157 questions on Contracts from the Alaska real estate question bank. First 10 are free — sign up to unlock all 157.

Q1. For a real estate contract in Alaska to be enforceable, it must be:

A.Notarized and recorded with the county
B.In writing and signed by the parties under the Statute of Frauds
C.Witnessed by two licensed real estate agents
D.Approved by the Alaska Real Estate Commission

Explanation

Under the Statute of Frauds, contracts for the sale of real estate must be in writing and signed by the party to be charged to be enforceable. Oral agreements to sell real estate are generally not enforceable in Alaska.

Q2. Under the Alaska Uniform Vendor and Purchaser Risk Act, if a property is substantially destroyed after the contract is signed but before closing, and neither party is at fault, who bears the loss?

A.The buyer, because the contract is already signed
B.The seller, because they still hold title
C.The loss is split 50/50 between buyer and seller
D.The title insurance company

Explanation

Under the Uniform Vendor and Purchaser Risk Act, which Alaska follows, the seller bears the risk of loss if the property is substantially destroyed before title or possession passes to the buyer. The buyer may rescind the contract and recover their deposit.

Q3. A buyer makes an offer to purchase a property. Before the seller responds, the buyer calls to withdraw the offer. The withdrawal is:

A.Invalid because the offer was submitted in writing
B.Valid, because an offer can be revoked before acceptance
C.Invalid, because the seller has 24 hours to accept or reject
D.Valid only if the buyer pays a cancellation fee

Explanation

An offer can be revoked by the offeror at any time before it is accepted. Once the seller communicates acceptance, a binding contract is formed and the offer cannot be revoked.

Q4. A seller's counteroffer to a buyer's original offer:

A.Keeps the original offer open while the buyer considers the counteroffer
B.Constitutes a rejection of the original offer and a new offer by the seller
C.Must be in the same form as the original offer
D.Automatically extends the time for the buyer to respond

Explanation

A counteroffer rejects the original offer and creates a new offer. The original offer is extinguished, and the buyer is now free to accept, reject, or counter the seller's counteroffer.

Q5. A contract contingency that states 'This offer is contingent upon the buyer obtaining financing at no more than 7% interest within 30 days' is an example of:

A.A liquidated damages clause
B.A condition precedent
C.An acceleration clause
D.A defeasance clause

Explanation

A condition precedent must be satisfied before the party's obligation to perform becomes binding. The financing contingency is a condition precedent — if the buyer cannot obtain financing at the specified terms, the contract does not need to be completed.

Q6. What is the legal effect when a buyer and seller sign a purchase agreement?

A.Title transfers immediately to the buyer
B.A binding executory contract is created
C.The seller must vacate the property within 30 days
D.The agent's commission is immediately earned

Explanation

A signed purchase agreement creates an executory contract — binding on both parties, but not yet fully performed. Title does not transfer until closing. The contract obligates both parties to perform their respective duties.

Q7. A real estate contract that lacks consideration is:

A.Voidable
B.Unenforceable only by the buyer
C.Void
D.Valid if notarized

Explanation

Consideration is an essential element of a valid contract. A contract without consideration is void — it has no legal effect and is unenforceable by either party.

Q8. A buyer signed a purchase contract under duress. The contract is:

A.Void
B.Voidable at the buyer's option
C.Valid and fully enforceable
D.Illegal

Explanation

A contract entered into under duress is voidable, not void. The party who was subjected to duress has the option to affirm or rescind the contract. It remains valid unless and until that party chooses to void it.

Q9. In Alaska, an option contract grants the optionee:

A.The obligation to purchase the property at the stated price
B.The right but not the obligation to purchase the property within a specified period
C.The right to list the property for sale
D.Immediate title to the property

Explanation

An option contract gives the optionee (buyer) the exclusive right to purchase the property at an agreed price within a specified time period but does not obligate them to do so. The optionor (seller) is bound to sell if the option is exercised.

Q10. A listing agreement is an employment contract between a:

A.Buyer and seller
B.Property owner and the real estate broker
C.Salesperson and the buyer
D.Mortgage lender and the property owner

Explanation

A listing agreement is a contract that establishes an employment relationship between the property owner (seller/principal) and the real estate broker (agent), authorizing the broker to find a buyer and earn a commission.

Q11. Under an exclusive right-to-sell listing, the listing broker earns a commission if:

A.Only if the broker personally finds the buyer
B.The property sells during the listing period, regardless of who finds the buyer
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