TEXAS PROMULGATED CONTRACTS
COMPREHENSIVE EXAMINATION TEST
2026 QUESTIONS AND SOLUTIONS
COMPLETE REVIEW
◉Competent Parties Summary:(3). Answer: Must be 18 + years of
age
Must be mentally competent
Cannot be temporary incompetent
◉The Texas Real Estate Commission regulates a licensee in which of
the following situations?. Answer: when license sell house for client:
which the licensee is acting in a third-party position
◉What is a legal agreement between parties to do (performance) or
not to do (forbearance) a certain act for consideration?. Answer: a
contract
◉Mutual Assent Summary (2). Answer: Agreement to all the terms
,Agreement by all the parties
◉two types of consideration. Answer: Valuable consideration is
something of value
Good consideration is love and affection
◉Consideration Summary. Answer: Something given in exchange for
something else
◉Assignment. Answer: One of the parties to a contract may choose
to assign the contract to a third individual.
◉Notation. Answer: write up a new agreement with the existing
parties
◉Mediation(non-binding). Answer: the third party mediator is
simply a facilitator attempting to keep both parties talking until they
can reach a solution (preferred method)
no schooling needed
,◉Arbitration. Answer: the arbitrator listens to both sides of the
situation and makes a decision. His or her decision is binding and
court action cannot be pursued.
require law degree/similar
◉Litigation. Answer: actually lawsuit - and costly
◉What law requires all contracts for real property to be in writing
to be enforceable?. Answer: Statute of Frauds
◉Recording Acts require. Answer: that any claim, interest, or
ownership in real estate be placed in the public records in the
county where the property is located.
◉What is duress?. Answer: use of force
◉Valid contract. Answer: 3 of 6 - When a written agreement is legal
and every item is completely agreed to, it is said to be which of the
following?
◉Void contract. Answer: When an essential element is missing in an
agreement and the courts would not hold it as a contract, then the
agreement would be:
, ◉Voidable contract. Answer: When one party could change their
mind and exit a contract, it is said to be:
◉An unenforceable contract. Answer: When one party may be in
default but because of the nature of the agreement, the damaged
party would not have the ability to sue the other party in court, this
is what type of contract?
◉Express contracts. Answer: verbal or in writing that is clear and
definite and would, therefore, be considered express contracts.
◉implied contract.. Answer: any contract that is not clear is usually
an implied contract. The agreement is indicated through the actions
of the parties rather than the written word.
◉Bilateral contracts. Answer: Both parties have rights and
obligations
◉unilateral contract. Answer: is a contract in which a party
promises to perform without expectation of performance by the
other party.
◉1 of 6 - When all promises in a contract have been met, that
contract is called what?. Answer: executed
COMPREHENSIVE EXAMINATION TEST
2026 QUESTIONS AND SOLUTIONS
COMPLETE REVIEW
◉Competent Parties Summary:(3). Answer: Must be 18 + years of
age
Must be mentally competent
Cannot be temporary incompetent
◉The Texas Real Estate Commission regulates a licensee in which of
the following situations?. Answer: when license sell house for client:
which the licensee is acting in a third-party position
◉What is a legal agreement between parties to do (performance) or
not to do (forbearance) a certain act for consideration?. Answer: a
contract
◉Mutual Assent Summary (2). Answer: Agreement to all the terms
,Agreement by all the parties
◉two types of consideration. Answer: Valuable consideration is
something of value
Good consideration is love and affection
◉Consideration Summary. Answer: Something given in exchange for
something else
◉Assignment. Answer: One of the parties to a contract may choose
to assign the contract to a third individual.
◉Notation. Answer: write up a new agreement with the existing
parties
◉Mediation(non-binding). Answer: the third party mediator is
simply a facilitator attempting to keep both parties talking until they
can reach a solution (preferred method)
no schooling needed
,◉Arbitration. Answer: the arbitrator listens to both sides of the
situation and makes a decision. His or her decision is binding and
court action cannot be pursued.
require law degree/similar
◉Litigation. Answer: actually lawsuit - and costly
◉What law requires all contracts for real property to be in writing
to be enforceable?. Answer: Statute of Frauds
◉Recording Acts require. Answer: that any claim, interest, or
ownership in real estate be placed in the public records in the
county where the property is located.
◉What is duress?. Answer: use of force
◉Valid contract. Answer: 3 of 6 - When a written agreement is legal
and every item is completely agreed to, it is said to be which of the
following?
◉Void contract. Answer: When an essential element is missing in an
agreement and the courts would not hold it as a contract, then the
agreement would be:
, ◉Voidable contract. Answer: When one party could change their
mind and exit a contract, it is said to be:
◉An unenforceable contract. Answer: When one party may be in
default but because of the nature of the agreement, the damaged
party would not have the ability to sue the other party in court, this
is what type of contract?
◉Express contracts. Answer: verbal or in writing that is clear and
definite and would, therefore, be considered express contracts.
◉implied contract.. Answer: any contract that is not clear is usually
an implied contract. The agreement is indicated through the actions
of the parties rather than the written word.
◉Bilateral contracts. Answer: Both parties have rights and
obligations
◉unilateral contract. Answer: is a contract in which a party
promises to perform without expectation of performance by the
other party.
◉1 of 6 - When all promises in a contract have been met, that
contract is called what?. Answer: executed
