Louisiana Contracts
Practice Questions & Answers (2026)
Contract law questions on the Louisiana real estate exam test both general contract principles and Louisiana-specific transaction requirements. The Louisiana Real Estate Commission (LREC) tests how Louisiana 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 Louisiana law for earnest money handling and contingency resolution. These are areas where candidates who studied nationally often apply the right concept but the wrong LA-specific timeframe or rule.
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Louisiana Contracts — Practice Questions & Answers
146 questions on Contracts from the Louisiana real estate question bank. First 10 are free — sign up to unlock all 146.
Q1. In Louisiana, a contract for the sale of immovable property (real estate) must be made by:
Explanation
Under Louisiana Civil Law, a contract for the sale of immovable property must be made by authentic act (notarized) or by act under private signature (written and signed by the parties).
Q2. In Louisiana, what is the term for an agreement to sell that binds both parties to complete a transaction in the future?
Explanation
A promesse de vente (promise of sale) in Louisiana is a binding agreement in which both parties obligate themselves to complete the sale, similar to a purchase agreement in other states.
Q3. In Louisiana, the term 'immovable property' is equivalent to:
Explanation
Under Louisiana Civil Law, 'immovable property' is the term used for real property — land and permanently attached improvements. 'Movable property' is the equivalent of personal property.
Q4. Under Louisiana contract law, 'lesion beyond moiety' allows a seller to rescind a sale of immovable property when:
Explanation
Louisiana's lesion beyond moiety doctrine allows a seller to rescind a sale of immovable property if the price received was less than one-half the property's fair market value at the time of sale.
Q5. A redhibitory defect in Louisiana real estate is:
Explanation
A redhibitory defect under Louisiana law is a hidden (latent) defect that renders the property unfit for its intended use or significantly diminishes its usefulness, giving the buyer the right to rescind the sale.
Q6. In Louisiana, if a buyer defaults on a purchase agreement, the seller's typical remedy is:
Explanation
When a buyer defaults in Louisiana, the seller may retain the earnest money as stipulated damages (if the contract so provides) or sue for specific performance to compel the buyer to complete the purchase.
Q7. Under Louisiana Civil Law, which element is NOT required for a valid contract?
Explanation
Louisiana Civil Law requires consent, lawful cause, and lawful object for a valid contract. While certain contracts (like sales of immovable property) must be in writing, not all contracts require a written instrument.
Q8. A buyer submits an offer on a Louisiana property. The seller makes a counteroffer. At this point:
Explanation
When a seller makes a counteroffer, the original buyer's offer is effectively rejected. The counteroffer is a new offer that the buyer may accept, reject, or counter.
Q9. What is the main purpose of a 'due diligence' contingency in a Louisiana purchase agreement?
Explanation
A due diligence contingency gives the buyer a defined period to inspect and investigate the property and withdraw from the contract if the results are unsatisfactory.
Q10. In Louisiana, 'earnest money' in a real estate contract is best described as:
Explanation
Earnest money is a deposit made by the buyer to demonstrate good faith and secure the purchase contract. It is typically applied toward the purchase price at closing.
Q11. Which of the following is an example of an 'option contract' in Louisiana real estate?
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