Missouri Contracts
Practice Questions & Answers (2026)
Contract law questions on the Missouri real estate exam test both general contract principles and Missouri-specific transaction requirements. The Missouri Real Estate Commission tests how Missouri 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 Missouri law for earnest money handling and contingency resolution. These are areas where candidates who studied nationally often apply the right concept but the wrong MO-specific timeframe or rule.
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Missouri Contracts — Practice Questions & Answers
135 questions on Contracts from the Missouri real estate question bank. First 10 are free — sign up to unlock all 135.
Q1. In Missouri, which element is required to make a real estate contract enforceable?
Explanation
Under Missouri's Statute of Frauds, contracts for the sale of real estate must be in writing and signed by the parties to be enforceable. Neither notarization nor recording is required for enforceability.
Q2. A Missouri buyer signs an offer that includes an earnest money deposit of $5,000. The seller never responds. The offer is:
Explanation
Without acceptance, there is no mutual assent and no contract is formed. The offer lapses and is void if not accepted within the specified or reasonable time.
Q3. A Missouri purchase contract contains an escalation clause that says the buyer will pay $2,000 more than any competing bona fide offer up to $350,000. A competing offer of $330,000 exists. What does the buyer pay?
Explanation
The escalation clause adds $2,000 to the competing offer: $330,000 + $2,000 = $332,000. The buyer pays $332,000, which is below the $350,000 cap.
Q4. An 'earnest money' deposit in a Missouri contract serves as:
Explanation
Earnest money serves as evidence of the buyer's good faith and provides consideration to make the contract binding. Its refundability depends on the terms of the contract and applicable contingencies.
Q5. A Missouri listing agreement is BEST described as which type of contract?
Explanation
A listing agreement is a bilateral contract: the seller promises to pay a commission, and the broker promises to use diligence to find a buyer. Both parties are mutually obligated.
Q6. A Missouri seller who wants to retain the right to sell the property on their own without paying a commission should sign a(n):
Explanation
Under an open listing, the seller may hire multiple brokers and pay a commission only to the one who procures the buyer. The seller also retains the right to sell independently without paying any commission.
Q7. Which of the following is an essential element of a valid real estate contract in Missouri?
Explanation
A valid contract requires mutual assent (offer and acceptance), consideration, competent parties, lawful purpose, and in real estate, must be in writing under the Statute of Frauds. Notarization and recording are not required for validity.
Q8. Under Missouri's Statute of Frauds, a contract for the sale of real estate must be:
Explanation
Missouri's Statute of Frauds requires contracts for the sale of real estate to be in writing and signed by the party against whom enforcement is sought.
Q9. An earnest money deposit in Missouri is held by the:
Explanation
In Missouri, earnest money must be deposited in the sponsoring broker's trust or escrow account. Commingling client funds with the broker's operating funds is prohibited.
Q10. A counteroffer in Missouri:
Explanation
A counteroffer rejects the original offer and substitutes a new offer. The original offer is terminated and the roles of offeror and offeree are reversed.
Q11. In Missouri, a contract contingency for a home inspection allows the buyer to:
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