North Dakota Contracts
Practice Questions & Answers (2026)
Contract law questions on the North Dakota real estate exam test both general contract principles and North Dakota-specific transaction requirements. The North Dakota Real Estate Commission tests how North Dakota 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 North Dakota law for earnest money handling and contingency resolution. These are areas where candidates who studied nationally often apply the right concept but the wrong ND-specific timeframe or rule.
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North Dakota Contracts — Practice Questions & Answers
126 questions on Contracts from the North Dakota real estate question bank. First 10 are free — sign up to unlock all 126.
Q1. Consideration in a real estate contract can be:
Explanation
Consideration is anything of legal value exchanged between parties. It can be money, a promise to pay, a promise to do something, or a promise to refrain from doing something.
Q2. A real estate contract is void if it lacks:
Explanation
A contract is void if the parties lack legal capacity. This includes minors, persons who are mentally incompetent, or those who are under the influence of substances at the time of signing.
Q3. Which type of listing agreement allows the seller to list with multiple brokers and only pay a commission to the one who produces a ready, willing, and able buyer?
Explanation
An open listing allows the seller to list with multiple brokers simultaneously. A commission is paid only to the broker who produces a ready, willing, and able buyer. The seller also retains the right to sell without paying a commission.
Q4. What is 'specific performance' as a remedy in a real estate contract?
Explanation
Specific performance is a court-ordered remedy requiring the breaching party to fulfill their contractual obligations. It is commonly sought in real estate because each property is considered unique.
Q5. In North Dakota, an offer becomes a binding contract when:
Explanation
An offer becomes a binding contract (mutual acceptance) when the seller accepts the offer and that acceptance is communicated to the buyer within the offer's time limit.
Q6. Which clause in a listing agreement specifies a period after the listing expires during which the broker may still earn a commission if they procured the buyer?
Explanation
The safety clause (also called an extender clause or protection clause) specifies a period after the listing expires during which the broker is entitled to a commission if the property is sold to a buyer the broker introduced during the listing period.
Q7. An addendum to a purchase agreement is best described as:
Explanation
An addendum is a written document that adds to, modifies, or clarifies the terms of an existing contract. It becomes part of the contract when signed by all parties.
Q8. A counteroffer legally:
Explanation
A counteroffer simultaneously rejects the original offer and creates a new offer with modified terms. The original offer is extinguished and the original offeror is no longer bound by it.
Q9. Which of the following is a bilateral contract?
Explanation
A bilateral contract is one where both parties make binding promises. A purchase agreement is bilateral because the buyer promises to pay and the seller promises to convey title.
Q10. In North Dakota, a real estate sales contract must be in writing to be enforceable under the:
Explanation
Under the Statute of Frauds, contracts for the sale of real estate must be in writing and signed by the party to be charged to be enforceable.
Q11. An option contract gives the optionee:
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