Delaware Practice Test → Contracts

Delaware Contracts
Practice Questions & Answers (2026)

Contract law questions on the Delaware real estate exam test both general contract principles and Delaware-specific transaction requirements. The Delaware Real Estate Commission tests how Delaware 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 Delaware law for earnest money handling and contingency resolution. These are areas where candidates who studied nationally often apply the right concept but the wrong DE-specific timeframe or rule.

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Delaware Contracts — Practice Questions & Answers

159 questions on Contracts from the Delaware real estate question bank. First 10 are free — sign up to unlock all 159.

Q1. Which of the following is a required element for a valid real estate contract in Delaware?

A.Acknowledgment before a notary
B.Recording in the county land records
C.Competent parties, offer and acceptance, consideration, and lawful purpose
D.Approval by the Delaware Real Estate Commission

Explanation

A valid contract in Delaware requires: competent parties, mutual assent (offer and acceptance), consideration, lawful purpose, and — for real estate — the agreement must be in writing per the Statute of Frauds.

Q2. A Delaware buyer submits an offer on a home. The seller changes the price and signs the modified offer back to the buyer. This is legally a:

A.Binding acceptance creating a contract
B.Counteroffer that terminates the original offer
C.Modification requiring the buyer's original signature
D.Rejection with no legal effect

Explanation

Any change to the terms of an offer creates a counteroffer, which legally terminates the original offer. The buyer is not bound to the changed terms — they may accept, reject, or counter the seller's counteroffer.

Q3. In a Delaware real estate transaction, the doctrine of equitable conversion means that:

A.The seller retains legal title until all contingencies are removed
B.The buyer's equitable interest in the property begins when the purchase contract is signed
C.The title company converts the deed to electronic format
D.The seller can convert the listing to a shorter-term agreement

Explanation

Equitable conversion holds that once a real estate contract is signed, the buyer acquires an equitable interest in the property, even though the seller retains legal title until closing. This can affect who bears the risk of loss if the property is damaged before closing.

Q4. A buyer is unable to close on a Delaware property due to the seller's defective title. The buyer's most appropriate remedy is:

A.Forfeiture of the earnest money
B.Rescission of the contract and return of the earnest money
C.Specific performance requiring the seller to convey defective title
D.Filing a complaint with the Real Estate Commission

Explanation

If the seller cannot deliver marketable title as required by the contract, the buyer is entitled to rescind the contract and receive a full refund of all deposits. The buyer may also seek damages for out-of-pocket costs.

Q5. An exclusive agency listing in Delaware differs from an exclusive right-to-sell listing in that:

A.The broker earns a commission only if they personally find the buyer
B.The seller may sell the property themselves without paying the broker a commission
C.The listing may be shown only by the listing broker's own agents
D.The listing automatically expires after 30 days

Explanation

Under an exclusive agency listing, the broker earns a commission if any broker procures the buyer, but the seller retains the right to sell the property independently without paying a commission. Under an exclusive right-to-sell, a commission is owed regardless of who finds the buyer.

Q6. Under Delaware contract law, 'specific performance' as a remedy means:

A.The breaching party pays monetary damages
B.A court orders the breaching party to perform the contract as agreed
C.The contract is cancelled and earnest money is refunded
D.The property is auctioned to the highest bidder

Explanation

Specific performance is a court-ordered equitable remedy requiring the defaulting party to fulfill their contractual obligations. In real estate, it is often sought by buyers because each parcel of land is considered unique.

Q7. Under Delaware contract law, what is necessary for a real estate contract to be enforceable?

A.Only an oral agreement between the parties
B.A written agreement signed by all parties
C.Notarization by a Delaware notary
D.Recording at the county recorder's office

Explanation

Under Delaware's Statute of Frauds, contracts for the sale of real estate must be in writing and signed by all parties to be enforceable.

Q8. In a Delaware real estate contract, 'consideration' refers to:

A.The agent's careful review of the transaction
B.Something of value exchanged between the parties
C.The legal description of the property
D.The zoning classification of the property

Explanation

Consideration is something of value that each party gives to the other, such as the buyer's promise to pay and the seller's promise to convey title. It is a required element of an enforceable contract.

Q9. A counteroffer by the seller in response to a buyer's offer has what legal effect?

A.It accepts the original offer with minor modifications
B.It rejects the original offer and creates a new offer
C.It requires the buyer to increase their offer
D.It extends the acceptance deadline automatically

Explanation

A counteroffer legally rejects the original offer and constitutes a new offer from the seller. The buyer is free to accept, reject, or counter the new offer.

Q10. An earnest money deposit in a Delaware real estate contract is best described as:

A.The down payment at closing
B.A mandatory government fee
C.A good-faith deposit demonstrating the buyer's intent to purchase
D.The first month's rent in a lease transaction

Explanation

Earnest money is a good-faith deposit made by the buyer to show serious intent to complete the purchase. It is held in escrow and typically applied toward the purchase price at closing.

Q11. Which type of contract gives one party the right, but not the obligation, to purchase a property within a set period?

A.Listing agreement
B.Option contract
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