Wyoming Practice TestContracts

Wyoming Contracts
Practice Questions & Answers (2026)

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

Practice Questions

Wyoming Contracts — Practice Questions & Answers

121 questions on Contracts from the Wyoming real estate question bank. First 10 are free — sign up to unlock all 121.

Q1. In Wyoming, a real estate sales contract must be in writing under the:

A.Wyoming Consumer Protection Act
B.Statute of Frauds (Wyoming Statutes § 1-23-105)
C.Wyoming Recording Act
D.Parol Evidence Rule

Explanation

Wyoming's Statute of Frauds (Wis. Stat. § 1-23-105) requires contracts for the sale of real property to be in writing and signed by the party to be charged in order to be legally enforceable.

Q2. A Wyoming seller accepts a buyer's offer that is contingent on the buyer selling their current home within 45 days. If the buyer's home does not sell within 45 days, the buyer may:

A.Automatically extend the contract another 45 days
B.Terminate the contract and recover the earnest money
C.Force the seller to wait indefinitely
D.Transfer the contingency to another buyer

Explanation

A home sale contingency allows the buyer to terminate and recover earnest money if their current property does not sell within the contingency period. The deadline is a condition precedent to closing.

Q3. An option contract in Wyoming gives the optionee the:

A.Obligation to purchase the property within the option period
B.Right but not the obligation to purchase the property at a set price within a specified time
C.Right to manage the property during the option period
D.Right to subdivide the property

Explanation

An option contract gives the optionee the exclusive right (but not the obligation) to purchase the property at an agreed price within a specified time period. If the option is not exercised, it expires.

Q4. In Wyoming, earnest money is best characterized as:

A.The commission owed to the broker
B.A deposit made by the buyer demonstrating good-faith intent to purchase
C.A penalty the buyer owes if they breach the contract
D.The seller's guarantee of title

Explanation

Earnest money is a deposit made by the buyer to demonstrate good faith and intent to purchase. It is held in escrow and applied to the purchase price at closing or handled per contract terms if the deal falls through.

Q5. A Wyoming contract clause stating that the seller will pay for any defects discovered in the first year after closing is called a:

A.Warranty clause
B.Hold harmless clause
C.Indemnification clause
D.Contingency clause

Explanation

A warranty clause is a contractual promise by the seller to stand behind the property condition for a specified period. It is distinct from a title warranty and relates to the physical condition of the property.

Q6. Under Wyoming law, a contract that requires the performance of an illegal act is:

A.Voidable by either party
B.Void and unenforceable from the start
C.Enforceable if both parties consented
D.Enforceable only by the injured party

Explanation

A contract with an illegal purpose or that requires an illegal act is void ab initio (from the beginning) and has no legal effect. Courts will not enforce illegal contracts.

Q7. A Wyoming buyer submits an offer that the seller counters with a higher price. The original offer is now:

A.Still valid and binding on the buyer
B.Rejected and terminated by the counteroffer
C.Held in escrow until the buyer responds
D.Automatically accepted if the buyer doesn't respond in 24 hours

Explanation

A counteroffer constitutes a rejection of the original offer and a new offer. The original offer is terminated and the buyer is under no obligation to accept the counteroffer.

Q8. A Wyoming real estate contract contains an 'as-is' clause. This means the buyer:

A.Has no right to inspect the property
B.Accepts the property in its current condition but does not waive the right to inspect
C.Automatically waives all contingencies
D.Cannot request repairs under any circumstances

Explanation

An as-is clause means the seller will not make repairs, but the buyer retains the right to inspect. The buyer may still terminate based on inspection results if there is an inspection contingency.

Q9. In Wyoming, liquidated damages clauses in a purchase contract typically provide that:

A.The seller keeps all proceeds if the buyer defaults
B.The seller keeps the earnest money as full compensation if the buyer defaults
C.The buyer is liable for all of the seller's actual damages
D.The buyer must pay a penalty equal to 10% of the purchase price

Explanation

A liquidated damages clause specifies that if the buyer defaults, the seller retains the earnest money deposit as the agreed-upon remedy, eliminating the need to prove actual damages.

Q10. A Wyoming property closes on June 15. The buyer's loan locks at 6.75% for 30 days from June 1. What happens if closing is delayed until July 5?

A.The rate lock automatically extends at no cost
B.The lock expires and the buyer must pay to extend or accept current market rates
C.The seller must pay the lock extension fee
D.Federal law requires the lender to honor the original rate

Explanation

Rate locks expire at the agreed-upon date. If closing is delayed beyond the lock period, the buyer may need to pay a lock extension fee or accept the current market rate, which could be higher.

Q11. A Wyoming land contract (contract for deed) differs from a traditional sale because:

A.The buyer receives the deed at signing
B.The seller retains legal title until the buyer pays off the purchase price
🔒

111 more Contracts questions

Create a free account to unlock all 121 Wyoming 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 Wyoming topics