Texas Law of Contracts – Cumulative EXAM QUESTIONS WITH CORRECT SOLUTIONS||UPDATED 2026/2027 SYLLABUS||100% GUARANTEED PASS||ALREADY GRADED A+||LATEST VERSION

Texas Law of Contracts – Cumulative EXAM QUESTIONS WITH CORRECT SOLUTIONS||UPDATED 2026/2027 SYLLABUS||100% GUARANTEED PASS||ALREADY GRADED A+||LATEST VERSION malfunction - ANSWER when something is designed or built to perform a certain function and no longer does so market value - ANSWER the price for which a property will sell if offered openly under normal conditions mechanic's lien - ANSWER a lien that establishes a claim against a property to secure payment for labor or materials used to improve that property mortgage lien - ANSWER a lien on property that was purchased with money borrowed from a lender mutual agreement - ANSWER a means of cancelling a contract in which all parties agree to the cancelation negotiable instrument - ANSWER a transferable, written promise by a party to pay a specific amount of money net lease - ANSWER a lease in which the tenant pays a base rent rate plus all or part of the operating expenses non-judicial foreclosure - ANSWER a foreclosure that does not involve a suit or ruling of the court — the two types are power-of-sale foreclosures and strict foreclosures offer and acceptance - ANSWER the mutual agreement of all parties to consent to all terms contained within the contract and to perform according to those terms option - ANSWER an agreement that gives one party the right to perform a non-obligatory action within a time period (ex: terminating a contract or the right of first refusal) option period - ANSWER the window of time during which a buyer can opt out of a contract without penalty; a right that is purchased by the buyer ownership interest - ANSWER an undisputed right of an owner to their property partial performance - ANSWER when one or more of the contracting parties perform only a portion of the agreed-upon contractual duties partnership - ANSWER a business entity legally formed for two or more individuals to share profits percentage lease - ANSWER a commercial lease in which the tenant pays a base rent amount and a percentage of their business profits to the landlord performance agreement - ANSWER part of a contract that requires the contracting parties either to perform certain actions or to uphold certain contractual promises periodic estate - ANSWER has a fixed lease period, meaning that the lease is automatically renewed at the end of each lease period until the landlord or tenant acts to terminate it; also known as periodic tenancy personal property - ANSWER any moveable, unattached property that is not real property; also known as chattel or personalty police power - ANSWER right of the state to regulate and restrict land-use in order to protect the public, including enforcing zoning and building codes power of attorney - ANSWER a legal document conferring the right for one individual to act on behalf of another power-of-sale clause - ANSWER gives lenders the ability to post property for foreclosure if the debtor is behind on payments principle of supply and demand - ANSWER the existing inventory of a commodity, product, or service available and the desire of consumers for it; factors that combine to influence price private land-use controls - ANSWER land-use controls that are put into place by non-governmental entities, such as real estate developers promissory estoppel - ANSWER a legal doctrine that forces a party to keep a promise and prevents a party from backing out of an agreement promissory note - ANSWER also known just as a note, it's a document in which the borrower acknowledges their debt and promises to repay the holder of the promissory note promulgated contracts - ANSWER contracts promoted by the Texas Real Estate Commission and required for use by all real estate sales agents when completing the transaction for which the contract was created proration - ANSWER the act of dividing or allocating expenses between buyers and sellers based on the actual period of usage of the item or service public land-use controls - ANSWER government-issued land-use controls such as zoning ordinances, subdivision regulations, and building codes public ownership of land - ANSWER the role of government to own and maintain public land such as streets, highways, and parks pur autre vie - ANSWER a life estate characterized by ownership lasting only for the duration of a designated party's lifetime real estate - ANSWER a part of the surface of land to the center of the earth and upward to space, plus all improvements made by man or nature remainderman - ANSWER the recipient of the remainder — either the grantor who set up the life estate or a designated third party rescission - ANSWER the act of terminating the contract without suffering any consequences RESPA - ANSWER legislation designed to protect consumers from predatory lending and educate them about closing and settlement services reversion - ANSWER a future interest in land that is created when a grantor transfers a qualified interest to another party for a specific amount of time, under the condition that the interest will revert to the grantor when that period expires reversionary interest - ANSWER refers to an estate wherein, upon the death of the life estate owner, full ownership reverts to the original fee simple owner; also known as a reversionary right reversionary right - ANSWER refers to an estate wherein, upon the occurrence of a certain condition or event, full ownership reverts back to the grantor riparian rights - ANSWER rights that govern the use of flowing water, such as rivers and streams that pass through or border a property S corp - ANSWER a corporation (that can only be formed with less than 100 shareholders) that is similarly taxed like a partnership to avoid double taxation sale and leaseback agreement - ANSWER a way for landowners to free up capital while maintaining the same overhead expenses by selling their interest in a property and leasing it back at the same monthly rate