Mississippi Contracts
Practice Questions & Answers (2026)

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

Practice Questions

Mississippi Contracts — Practice Questions & Answers

117 questions on Contracts from the Mississippi real estate question bank. First 10 are free — sign up to unlock all 117.

Q1. Under Mississippi law, a real estate contract to be enforceable must be:

A.Notarized and filed with the chancery court
B.In writing and signed by the party to be charged
C.Witnessed by two independent parties
D.Recorded in the county deed records

Explanation

Mississippi's Statute of Frauds requires contracts for the sale of real property to be in writing and signed by the party against whom enforcement is sought.

Q2. A buyer submits an offer with an earnest money deposit. The seller makes a counteroffer. The original offer is:

A.Still binding on the buyer
B.Terminated; the counteroffer is a new offer
C.Extended automatically for 48 hours
D.Accepted unless the buyer objects

Explanation

A counteroffer terminates the original offer and creates a new offer. The original offeror (buyer) is now free to accept, reject, or counter the new offer.

Q3. A voidable contract in Mississippi is one that:

A.Has no legal effect whatsoever
B.Is valid but can be rescinded by one party due to a defect such as misrepresentation or incapacity
C.Has been canceled by mutual agreement
D.Is missing an essential element

Explanation

A voidable contract is binding unless the party with the right to rescind elects to void it. Common grounds include misrepresentation, fraud, undue influence, or a party's incapacity.

Q4. An addendum to a Mississippi purchase agreement:

A.Replaces the original agreement entirely
B.Modifies or adds terms to the original agreement and must be signed by all parties
C.Requires court approval to be valid
D.Can only be prepared by an attorney

Explanation

An addendum modifies, clarifies, or adds specific terms to the original purchase agreement. It must be signed by all parties to be binding and becomes part of the contract.

Q5. In Mississippi, which type of listing gives the seller the right to sell the property independently without paying a commission?

A.Exclusive right-to-sell listing
B.Exclusive agency listing
C.Open listing
D.Net listing

Explanation

Under an exclusive agency listing, only one broker is authorized to market the property, but the seller retains the right to sell the property themselves without paying the broker a commission.

Q6. A 'net listing' in Mississippi is:

A.Expressly encouraged as it maximizes seller proceeds
B.Legal but discouraged because it creates potential conflicts of interest
C.Prohibited in Mississippi
D.Required for commercial transactions over $1 million

Explanation

Net listings, where the broker keeps everything above the seller's desired net price as commission, are prohibited in Mississippi because they create serious conflicts of interest and potential for overreaching.

Q7. In Mississippi, an offer to purchase real estate becomes a binding contract when:

A.The buyer signs it and delivers it to the seller
B.The seller accepts all terms without modification and communicates that acceptance to the buyer
C.The earnest money check clears the bank
D.Both parties sign and a notary acknowledges the signatures

Explanation

A contract is formed when the offeree (seller) unconditionally accepts all terms of the offer and communicates that acceptance back to the offeror (buyer). Both communication and acceptance are required.

Q8. A contingency clause in a Mississippi real estate purchase agreement:

A.Automatically extends the closing date by 30 days
B.Makes the contract binding only if a specific condition is met
C.Allows either party to cancel without cause
D.Requires the seller to pay all closing costs

Explanation

A contingency makes the contract conditional on a specific event occurring, such as the buyer obtaining financing, the property appraising at a certain value, or satisfactory inspection results.

Q9. Under Mississippi law, which of the following is an essential element of a valid real estate contract?

A.Notarization by a licensed notary
B.Mutual assent (offer and acceptance)
C.Approval by the buyer's lender
D.Involvement of a licensed real estate agent

Explanation

Essential contract elements include offer and acceptance (mutual assent), consideration, legal capacity of parties, lawful purpose, and in real estate, written form with adequate property description.

Q10. A buyer and seller in Mississippi enter a purchase agreement. The buyer later discovers the property is in a flood zone not disclosed by the seller. The buyer may:

A.Only request a price reduction
B.Seek rescission of the contract based on material misrepresentation
C.Demand the seller purchase flood insurance
D.Only proceed with the purchase as disclosed

Explanation

Failure to disclose a material fact like flood zone status may constitute misrepresentation, entitling the buyer to rescind the contract and recover damages.

Q11. The time period during which a buyer may conduct inspections and due diligence under a Mississippi purchase agreement is called:

A.The escrow period
B.The inspection or due diligence contingency period
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