Law of Contracts | Complete Questions
and Answers | 100% Correct - A+
• The TREC residential contract forms are: -✓✓Drafted by the Broker Lawyer
Committee
• Wrongful or criminal deception intended to result in financial or personal gain is called:
-✓✓fraud
• Under the Deceptive Trade Practices Act, __________ are defined as tangible
chattels. -✓✓goods
• If a seller will continue to occupy the property for one month after the closing, the
buyer and seller should: -✓✓Enter into a Seller's Temporary Residential Lease
• The Buyer and Seller Temporary Residential Lease forms may be used for a lease
period not to exceed: -✓✓90 days
• a seller's disclosure notice is not required -✓✓at a foreclosure sale
• The type of law that deals with the relationship between the parties to a transaction,
sales agents and brokers is: -✓✓agency law
• __________ is the body of laws and regulations enacted by federal and state
legislative bodies. -✓✓statutory law
• __________ extend above the surface without limitation. -✓✓air rights
• Any man-made addition to land that is permanent, and is considered to become part of
the land is known as a(n) __________. -✓✓improvement
• A(n) __________ is an entity created for the benefit of another. -✓✓trust
• an option contract is: -✓✓unilateral contract
• __________ is not a requirement of a valid contract. -✓✓earnest money
• If a person has been judged to be incompetent, a contract is __________ because the
person never had the capacity to enter into a contract in the first place. -✓✓void
, • The five essential elements of a valid and enforceable contract are, Consideration,
Offer and Acceptance, Legal purpose, In writing and __________. -✓✓competent
parties
• A(n) __________ is an agreement between two or more parties to do something or to
refrain from doing something. -✓✓contract
• When an individual owns real property, he or she is said to have a (n) __________ in
that property. -✓✓freehold estate
• If property violates zoning, the owners must request a __________, which is
permission to violate the rules. -✓✓variance
• An example(s) of an appurtenance would be: -✓✓easements
• There is no upper limit on the value of a Texas homestead. -✓✓true
• A(n) __________ is an area of land separating one land use from another. -✓✓buffer
zone
• The French term __________ means a life estate that is based on the life of another. -
✓✓pur autre vie
• In a residential lease with a "right of first refusal" provision: -✓✓The tenant has the
right to match or better any offer the landlord receives to prevent the property from
being sold to someone else
• A __________ is an employment agreement between the seller and the broker. -
✓✓listing agreement
• A(n) __________ is one that combines some of the elements of a sale with a lease. -
✓✓lease purchase agreement
• Prior to closing, severe damage to or destruction of a property under contract: -✓✓Can
result in termination of the contract
• The four major types of listing agreements are, exclusive agency, net listing, exclusive
right to sell and __________. -✓✓open listing
• In a __________ lease, the tenant's rent is based, in whole or in part, on the receipts
of his or her business. -✓✓percentage lease
and Answers | 100% Correct - A+
• The TREC residential contract forms are: -✓✓Drafted by the Broker Lawyer
Committee
• Wrongful or criminal deception intended to result in financial or personal gain is called:
-✓✓fraud
• Under the Deceptive Trade Practices Act, __________ are defined as tangible
chattels. -✓✓goods
• If a seller will continue to occupy the property for one month after the closing, the
buyer and seller should: -✓✓Enter into a Seller's Temporary Residential Lease
• The Buyer and Seller Temporary Residential Lease forms may be used for a lease
period not to exceed: -✓✓90 days
• a seller's disclosure notice is not required -✓✓at a foreclosure sale
• The type of law that deals with the relationship between the parties to a transaction,
sales agents and brokers is: -✓✓agency law
• __________ is the body of laws and regulations enacted by federal and state
legislative bodies. -✓✓statutory law
• __________ extend above the surface without limitation. -✓✓air rights
• Any man-made addition to land that is permanent, and is considered to become part of
the land is known as a(n) __________. -✓✓improvement
• A(n) __________ is an entity created for the benefit of another. -✓✓trust
• an option contract is: -✓✓unilateral contract
• __________ is not a requirement of a valid contract. -✓✓earnest money
• If a person has been judged to be incompetent, a contract is __________ because the
person never had the capacity to enter into a contract in the first place. -✓✓void
, • The five essential elements of a valid and enforceable contract are, Consideration,
Offer and Acceptance, Legal purpose, In writing and __________. -✓✓competent
parties
• A(n) __________ is an agreement between two or more parties to do something or to
refrain from doing something. -✓✓contract
• When an individual owns real property, he or she is said to have a (n) __________ in
that property. -✓✓freehold estate
• If property violates zoning, the owners must request a __________, which is
permission to violate the rules. -✓✓variance
• An example(s) of an appurtenance would be: -✓✓easements
• There is no upper limit on the value of a Texas homestead. -✓✓true
• A(n) __________ is an area of land separating one land use from another. -✓✓buffer
zone
• The French term __________ means a life estate that is based on the life of another. -
✓✓pur autre vie
• In a residential lease with a "right of first refusal" provision: -✓✓The tenant has the
right to match or better any offer the landlord receives to prevent the property from
being sold to someone else
• A __________ is an employment agreement between the seller and the broker. -
✓✓listing agreement
• A(n) __________ is one that combines some of the elements of a sale with a lease. -
✓✓lease purchase agreement
• Prior to closing, severe damage to or destruction of a property under contract: -✓✓Can
result in termination of the contract
• The four major types of listing agreements are, exclusive agency, net listing, exclusive
right to sell and __________. -✓✓open listing
• In a __________ lease, the tenant's rent is based, in whole or in part, on the receipts
of his or her business. -✓✓percentage lease
