1. What does an indemnity clause in a contract provide?

	Only where the losses and expenses incurred by one party is below $500,000 will the other party be liable.
	Any losses or expenses incurred by one party will be shared by both parties.
	Any losses or expenses incurred by one party will be paid for by the other party.
	Only where the losses and expenses incurred by one party exceeds $500,000 will the other party be liable.

2. Which of the following best describes the effect of a "condition subsequent" in a contractual agreement?

	The contract will continue if the parties agree to overlook a condition subsequent.
	The contract will terminate when a specified event or circumstance occurs.
	The contract will not terminate if the parties fail to perform their obligations specified under the contract.
	The contract will only fail if the parties have a financial agreement that exceeds $1.5 million.

3. Which is the greatest interest a person can have in land?

	Fee Simple
	Leasehold Estate
	Homestead Estate
	Life Estate