Idaho Contracts
Practice Questions & Answers (2026)
Contract law questions on the Idaho real estate exam test both general contract principles and Idaho-specific transaction requirements. The Idaho Real Estate Commission tests how Idaho 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 Idaho law for earnest money handling and contingency resolution. These are areas where candidates who studied nationally often apply the right concept but the wrong ID-specific timeframe or rule.
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Idaho Contracts — Practice Questions & Answers
136 questions on Contracts from the Idaho real estate question bank. First 10 are free — sign up to unlock all 136.
Q1. An offer to purchase real property becomes a binding contract when:
Explanation
A contract is formed when the offeror (buyer) is notified of the offeree's (seller's) acceptance. Signing alone does not create a contract — the acceptance must be communicated to the buyer.
Q2. A listing agreement in Idaho is BEST described as:
Explanation
A listing agreement is an employment contract between the property owner (seller) and the broker, authorizing the broker to act as the seller's agent to find a buyer. Both parties have obligations, making it a bilateral contract.
Q3. Which of the following voids a real estate contract?
Explanation
Lack of consideration is a factor that voids a contract, as consideration is one of the essential elements of a valid contract. A contract without consideration is unenforceable.
Q4. In a real estate purchase agreement, a contingency clause:
Explanation
A contingency clause makes the contract conditional on a specified event (such as financing approval, satisfactory inspection, or appraisal). If the contingency is not satisfied, the affected party may be able to cancel without penalty.
Q5. When a seller accepts an offer and the transaction closes, the listing broker has earned a commission under which type of listing?
Explanation
Under an exclusive right-to-sell listing, the listing broker earns a commission regardless of who produces the buyer — even if the seller finds their own buyer. This provides the broker the greatest protection of earning their commission.
Q6. A real estate contract signed by a minor is generally:
Explanation
Contracts signed by minors are voidable at the minor's option. The minor can disaffirm the contract upon reaching the age of majority. The adult party, however, is bound and cannot avoid their obligations.
Q7. Which of the following is NOT an essential element of a valid real estate contract?
Explanation
Not all contracts need to be in writing to be valid — verbal contracts can be valid. However, under the Statute of Frauds, contracts for the sale of real property must be in writing to be enforceable. 'Written form' is not an essential element of contract validity itself.
Q8. A counteroffer by the seller:
Explanation
A counteroffer simultaneously rejects the original offer and proposes new terms. Once the seller counters, the original offer is dead — the buyer can accept the counteroffer, reject it, or counter again.
Q9. The Statute of Frauds requires that real estate contracts be:
Explanation
The Statute of Frauds requires contracts for the sale or transfer of real property to be in writing and signed by the party against whom enforcement is sought. An oral agreement to sell real estate is generally unenforceable.
Q10. What is the difference between a void contract and a voidable contract?
Explanation
A void contract has no legal effect — it is treated as if it never existed (e.g., a contract for an illegal purpose). A voidable contract is valid and enforceable until the party with the right to rescind (e.g., a minor or a fraud victim) chooses to void it.
Q11. An option to purchase real estate is an example of a:
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