PROMULGATED CONTRACT FORMS –
TEXAS EXAM QUESTIONS AND
ANSWERS. VERIFIED 2026.
Mutual Consent - ANS A "meeting of the minds" (offer and acceptance)
Unilateral Contract - ANS A contract in which only one party is obligated to perform
Consideration - ANS Something given in exchange for a promise
Option - ANS An agreement between a buyer and seller giving the buyer the right to
purchase a property at a preset price for a given period of time.
Unenforceable Contract - ANS A contract that cannot be enforced due to some flaw or other
issue in the contract.
Valid Contract - ANS one that meets all the requirements of law; Competent Parties, Offer
and Acceptance, Legal Purpose, In Writing (when required by law), Consideration
Void Contract - ANS invalid from the beginning, and has no effect on the parties, i.e. illegal
act
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
1
,Voidable Contract - ANS one that cannot be enforced against one or more of the parties, i.e.
contract entered into with a minor
Executory Contract - ANS a contract that is binding on the parties, with one or more of the
parties having contractual duties that have not yet been performed. The effective date is the
date that acceptance was communicated to the offering party.
Bilateral Contract - ANS Both parties are obligated to perform, i.e. a contract of sale between
a buyer and a seller
Assignment - ANS Transfers all of the rights related to the contract to another party known as
an assignee. The assignee assumes primary liability for the performance under the contracts,
and the assignor, unless released, remains secondarily liable.
Novation - ANS Occurs when a new contract is substituted for an existing one.
T or F - Contracts may be valid, void, voidable, but not unenforceable. - ANS Fales
T or F - Though the sale is closed, that doesn't necessarily mean the contract has been fully
executed. - ANS Fales
T or F - Contracts executed by minors are generally voidable at the option of the minor, but may
be enforced by the minor against the adult party. - ANS True
T or F - Changes to the sale price, down payment or amount financed may not be agreed to by
the partied for any reason - ANS False
T or F - All oral negotiations are voluntary, and do not become binding until written. -
ANS True
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
2
, T or F - All states have a limitation of time in which an individual may file suit in court for
damages because a party breaches contract. - ANS True
T or F - A contract for an illegal purpose is void, and the law treats the contract as if it were
never created. - ANS True
T or F - An novation to a contract is an attachment that adds or further describes the rights and
duties of the parties. - ANS False
T or F - An addendum to a contract occurs when a new contract is substituted for an existing
one. - ANS False
T or F - Once all the terms of an offer have been agreed to and signed by the parties, and the
acceptance communicated to the offeror, the contract becomes binding on the parties. -
ANS True
The five essential elements that must exist for a real estate sales contract to be considered valid
and enforceable are: legal purpose, competent parties, mutual consent, consideration and
______________.
a. signature of witnesses
b. in writing
c. acknowledgment by a notary
d. recording in county clerks office - ANS B
If a contract has been entered into with a person who has been judged to be incompetent, that
contract is considered __________ because that person never had the capacity to enter into it.
a. executed
b. valid
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
3
TEXAS EXAM QUESTIONS AND
ANSWERS. VERIFIED 2026.
Mutual Consent - ANS A "meeting of the minds" (offer and acceptance)
Unilateral Contract - ANS A contract in which only one party is obligated to perform
Consideration - ANS Something given in exchange for a promise
Option - ANS An agreement between a buyer and seller giving the buyer the right to
purchase a property at a preset price for a given period of time.
Unenforceable Contract - ANS A contract that cannot be enforced due to some flaw or other
issue in the contract.
Valid Contract - ANS one that meets all the requirements of law; Competent Parties, Offer
and Acceptance, Legal Purpose, In Writing (when required by law), Consideration
Void Contract - ANS invalid from the beginning, and has no effect on the parties, i.e. illegal
act
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
1
,Voidable Contract - ANS one that cannot be enforced against one or more of the parties, i.e.
contract entered into with a minor
Executory Contract - ANS a contract that is binding on the parties, with one or more of the
parties having contractual duties that have not yet been performed. The effective date is the
date that acceptance was communicated to the offering party.
Bilateral Contract - ANS Both parties are obligated to perform, i.e. a contract of sale between
a buyer and a seller
Assignment - ANS Transfers all of the rights related to the contract to another party known as
an assignee. The assignee assumes primary liability for the performance under the contracts,
and the assignor, unless released, remains secondarily liable.
Novation - ANS Occurs when a new contract is substituted for an existing one.
T or F - Contracts may be valid, void, voidable, but not unenforceable. - ANS Fales
T or F - Though the sale is closed, that doesn't necessarily mean the contract has been fully
executed. - ANS Fales
T or F - Contracts executed by minors are generally voidable at the option of the minor, but may
be enforced by the minor against the adult party. - ANS True
T or F - Changes to the sale price, down payment or amount financed may not be agreed to by
the partied for any reason - ANS False
T or F - All oral negotiations are voluntary, and do not become binding until written. -
ANS True
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
2
, T or F - All states have a limitation of time in which an individual may file suit in court for
damages because a party breaches contract. - ANS True
T or F - A contract for an illegal purpose is void, and the law treats the contract as if it were
never created. - ANS True
T or F - An novation to a contract is an attachment that adds or further describes the rights and
duties of the parties. - ANS False
T or F - An addendum to a contract occurs when a new contract is substituted for an existing
one. - ANS False
T or F - Once all the terms of an offer have been agreed to and signed by the parties, and the
acceptance communicated to the offeror, the contract becomes binding on the parties. -
ANS True
The five essential elements that must exist for a real estate sales contract to be considered valid
and enforceable are: legal purpose, competent parties, mutual consent, consideration and
______________.
a. signature of witnesses
b. in writing
c. acknowledgment by a notary
d. recording in county clerks office - ANS B
If a contract has been entered into with a person who has been judged to be incompetent, that
contract is considered __________ because that person never had the capacity to enter into it.
a. executed
b. valid
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
3
