Continuing from the preceding scenario, if the purchaser, Mr. David, is unable or unwilling to complete the property transaction on 25th August 2025, the vendor, Mr. Michael, may:

elect not to receive the late completion interest but retain such rents and other profits whilst accounting for all outgoings, expenses and levies up to and including the Completion Date

David writes to Michael stating, 'I'm willing to rent your property for $1,200 per month. If I don't hear from you by 15th October 2025, I will assume you have accepted my offer.' Michael did not act nor reply by 15th October 2025. What is the legal position?

Michael need not rent the property to David because acceptance must be communicated to be valid.

Paper 1

Law of Contract

Contract formation, terms, breach, remedies

111 practice questions available in the app

Study Guide

Law of Contract is part of Paper 1 — Real Estate Agency of the RES examination. This topic covers contract formation, terms, breach, remedies.

Key facts

Part of Paper 1 (Law of contract, agency, property, land registration)
111 practice questions in the app
Multiple choice format — 4 options per question
Must score 75% or higher on Paper 1 to pass

Use the sample questions below to test your understanding. For comprehensive practice with all 111 questions, progress tracking, and timed exam simulation, download the Prepare app.

Try Sample Questions

Test your knowledge with 5 free questions from this topic.

Question 1 of 5

Which Singapore statute regulates and restricts the use of an 'exemption clause' that seeks to exclude or limit liability for breach of contract or negligence?

Frequently Asked Questions

What are the essential elements of a valid contract in Singapore?

A valid contract requires: (1) offer, (2) acceptance, (3) consideration, (4) intention to create legal relations, and (5) capacity of the parties. For property transactions, additional requirements include writing (under the Statute of Frauds) for contracts involving land.

How many Law of Contract questions are in the RES exam?

There are approximately 111 practice questions available for Law of Contract. It is the second largest Paper 1 topic by question count and is heavily tested because contract law underpins all property transactions.

What is the Option to Purchase (OTP) in contract law?

The Option to Purchase is a contract granting the buyer the right (but not obligation) to purchase a property within a specified period, typically 14 days for private properties. The buyer pays an option fee (usually 1% of the price) which is forfeited if the option is not exercised.

Study Resources for Law of Contract

Topic Explainer9 min read

Breach of Contract Remedies in Law of Contract: RES Exam Deep Dive

In-depth analysis of Breach of Contract Remedies within Law of Contract. Essential knowledge for the RES exam with detailed explanations and practical examples.

13 February 2026

Topic Explainer9 min read

Misrepresentation in Law of Contract: RES Exam Deep Dive

In-depth analysis of Misrepresentation within Law of Contract. Essential knowledge for the RES exam with detailed explanations and practical examples.

13 February 2026

Study Guide8 min read

Law of Contract Cheat Sheet for RES Exam Revision

Quick reference guide for Law of Contract revision. Key definitions, rules, thresholds, and must-remember facts for the RES exam.

13 February 2026

Industry Insights9 min read

How Law of Contract Applies in Singapore Real Estate Practice

See how Law of Contract knowledge applies in real property transactions. Practical scenarios every Singapore agent encounters.

12 February 2026

Practice all 111 Law of Contract questions

Get the Prepare app for full access to practice questions, timed exams, progress tracking, and weak area analysis.

Law of Contract

Study Guide

Try Sample Questions

Frequently Asked Questions

Study Resources for Law of Contract

Breach of Contract Remedies in Law of Contract: RES Exam Deep Dive

Misrepresentation in Law of Contract: RES Exam Deep Dive

Law of Contract Cheat Sheet for RES Exam Revision

How Law of Contract Applies in Singapore Real Estate Practice

Practice all 111 Law of Contract questions

More Paper 1 Topics

Land Law Concepts

Law of Agency

Land Registration

Rights of Landlord & Tenant