Oregon Contracts
Practice Questions & Answers (2026)
Contract law questions on the Oregon real estate exam test both general contract principles and Oregon-specific transaction requirements. The Oregon Real Estate Agency tests how Oregon 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 Oregon law for earnest money handling and contingency resolution. These are areas where candidates who studied nationally often apply the right concept but the wrong OR-specific timeframe or rule.
Oregon Exam Study Resources
Everything you need to pass — in one place.
Oregon Contracts — Practice Questions & Answers
138 questions on Contracts from the Oregon real estate question bank. First 10 are free — sign up to unlock all 138.
Q1. In Oregon, the buyer's right to rescind after receiving a Seller's Property Disclosure Statement is:
Explanation
Oregon law gives buyers 5 business days after receiving the Seller's Property Disclosure Statement to rescind their offer without penalty. This right ensures buyers have an opportunity to review the disclosure before being bound.
Q2. Which of the following is a required element for a real estate purchase contract to be valid in Oregon?
Explanation
A valid real estate contract in Oregon must identify the property being sold; a legal description or sufficient identification of the property is required. Notarization is not required for the contract itself, though it is required for recording a deed.
Q3. An Oregon seller accepts a buyer's offer at 9:00 AM and notifies the buyer's agent at 10:00 AM. At 9:30 AM, the buyer had emailed a revocation of the offer. The contract is:
Explanation
An offer can be revoked any time before acceptance is communicated to the offeror. The buyer revoked at 9:30 AM, before the seller communicated acceptance at 10:00 AM. Therefore, there was no binding contract formed.
Q4. Which of the following best describes an option contract in Oregon real estate?
Explanation
An option contract is a unilateral contract: the seller (optionor) is bound to sell if the buyer (optionee) exercises the option, but the buyer has no obligation to purchase. The buyer pays option consideration for this right.
Q5. The doctrine of 'time is of the essence' in an Oregon purchase contract means:
Explanation
When a contract includes a 'time is of the essence' clause, all specified dates and deadlines are strictly binding. Missing a deadline — such as a closing date or contingency removal date — can constitute a breach of contract.
Q6. An Oregon buyer defaults on a purchase contract. Which remedy allows the seller to keep the earnest money deposit as full compensation?
Explanation
Liquidated damages clauses specify in advance the amount of damages owed if one party defaults. When a purchase contract designates the earnest money as liquidated damages, and the buyer defaults, the seller keeps the deposit as agreed-upon compensation.
Q7. Under Oregon contract law, an agreement that lacks consideration is:
Explanation
Consideration is a required element of a valid contract. Without consideration (something of value exchanged by both parties), a contract lacks mutual obligation and is void — it has no legal effect from the outset.
Q8. An Oregon purchase and sale agreement is deemed accepted when:
Explanation
In contract law, a contract is formed (and acceptance is complete) when acceptance is communicated to the offeror. Merely signing is not enough — the acceptance must be conveyed to the person who made the offer.
Q9. Which of the following is a characteristic of an 'as-is' clause in an Oregon purchase contract?
Explanation
An 'as-is' clause in Oregon shifts the burden of unknown defects to the buyer but does NOT excuse sellers from disclosing known material defects. Sellers must still complete the Seller's Property Disclosure Statement and cannot use 'as-is' to conceal known problems.
Q10. A contract contingency that protects the buyer if they are unable to obtain financing is called a:
Explanation
A financing contingency (or mortgage contingency) allows the buyer to terminate the contract without penalty if they are unable to obtain a mortgage loan on specified terms within the contingency period. It is one of the most common contingencies in residential contracts.
Q11. In Oregon, a lease of real property for a term longer than one year must be:
128 more Contracts questions
Create a free account to unlock all 138 Oregon Contracts questions with full explanations.
Free account · No credit card · Instant access to 25 questions
Ready to take the full exam? Start free.
25 free questions · No signup · Instant access to all Oregon topics