RealEstateU Texas Promulgated Contract
Forms Exam 2026 – Verified Questions
and Correct Answers – Texas Real Estate
Contracts
SECTION 1: CONTRACT LAW FUNDAMENTALS (Questions 1-20)
Question 1
To have no force or effect is referred to as a _________ contract?
A. Void
B. Valid
C. Enforceable
D. Executed
Correct ,,,ANSWER,,,: A. Void
Rationale: A void contract is invalid from the beginning and has no legal effect on
the parties . This occurs when the contract involves an illegal act or lacks an
essential element. A valid contract (Option B) has all essential elements. An
enforceable contract (Option C) can be upheld in court. An executed contract
(Option D) has been fully performed.
,Question 2
That which is capable of being adjusted or voided, but is not unless action is taken
to make it so, is referred to as a/an _________ contract?
A. Unenforceable
B. Voidable
C. Executed
D. Expired
Correct ,,,ANSWER,,,: B. Voidable
Rationale: A voidable contract is one that cannot be enforced against one or more
of the parties, meaning the wronged party has the option to perform, enforce, or
void the contract . A contract entered into with a minor is a classic example—the
minor can void it, but the other party cannot. An unenforceable contract (Option A)
cannot be enforced due to a flaw, but the parties may still perform voluntarily.
Question 3
In order to be considered a competent party, an individual must be of the age of the
_________?
A. Majority
B. Minority
C. Other party
D. None of the above
Correct ,,,ANSWER,,,: A. Majority
Rationale: The age of majority is 18 in Texas for contract purposes . Individuals
under this age are considered minors who lack full contractual capacity. Contracts
with minors are generally voidable at the minor's option. While there are
,exceptions for necessities, the general rule requires parties to have reached the age
of majority.
Question 4
A contract in which one of the parties is a minor is considered a _________?
A. Void contract
B. Executed contract
C. Voidable contract
D. Waived contract
Correct ,,,ANSWER,,,: C. Voidable contract
Rationale: A contract with a minor is voidable at the minor's election . The minor
can choose to affirm or disaffirm the contract upon reaching majority, but the adult
party cannot void it. This protects minors from being bound by contracts they may
not fully understand.
Question 5
A contract in which there is fraud by either commission or omission is voidable by
the _________?
A. Either the non-fraudulent or fraudulent party
B. Fraudulent party
C. The contract is not voidable
D. Non-fraudulent party
Correct ,,,ANSWER,,,: D. Non-fraudulent party
, Rationale: When fraud occurs, only the innocent party (the non-fraudulent party)
has the right to void the contract . The fraudulent party cannot benefit from their
own wrong by voiding the contract. This principle prevents those who commit
fraud from using it as a defense.
Question 6
A contract in which each party promises to do something is referred to as a
_________?
A. Unilateral contract
B. Bilateral contract
C. Executed contract
D. Void contract
Correct ,,,ANSWER,,,: B. Bilateral contract
Rationale: A bilateral contract involves mutual promises where each party is
obligated to perform . A real estate sales contract is a bilateral contract—the buyer
promises to pay, and the seller promises to convey title. This is distinguished from
a unilateral contract where only one party makes a promise.
Question 7
When one party promises to do something if the other party performs a certain act,
but the other party does not promise to perform it, it is referred to as a _________?
A. Bilateral contract
B. Void contract
Forms Exam 2026 – Verified Questions
and Correct Answers – Texas Real Estate
Contracts
SECTION 1: CONTRACT LAW FUNDAMENTALS (Questions 1-20)
Question 1
To have no force or effect is referred to as a _________ contract?
A. Void
B. Valid
C. Enforceable
D. Executed
Correct ,,,ANSWER,,,: A. Void
Rationale: A void contract is invalid from the beginning and has no legal effect on
the parties . This occurs when the contract involves an illegal act or lacks an
essential element. A valid contract (Option B) has all essential elements. An
enforceable contract (Option C) can be upheld in court. An executed contract
(Option D) has been fully performed.
,Question 2
That which is capable of being adjusted or voided, but is not unless action is taken
to make it so, is referred to as a/an _________ contract?
A. Unenforceable
B. Voidable
C. Executed
D. Expired
Correct ,,,ANSWER,,,: B. Voidable
Rationale: A voidable contract is one that cannot be enforced against one or more
of the parties, meaning the wronged party has the option to perform, enforce, or
void the contract . A contract entered into with a minor is a classic example—the
minor can void it, but the other party cannot. An unenforceable contract (Option A)
cannot be enforced due to a flaw, but the parties may still perform voluntarily.
Question 3
In order to be considered a competent party, an individual must be of the age of the
_________?
A. Majority
B. Minority
C. Other party
D. None of the above
Correct ,,,ANSWER,,,: A. Majority
Rationale: The age of majority is 18 in Texas for contract purposes . Individuals
under this age are considered minors who lack full contractual capacity. Contracts
with minors are generally voidable at the minor's option. While there are
,exceptions for necessities, the general rule requires parties to have reached the age
of majority.
Question 4
A contract in which one of the parties is a minor is considered a _________?
A. Void contract
B. Executed contract
C. Voidable contract
D. Waived contract
Correct ,,,ANSWER,,,: C. Voidable contract
Rationale: A contract with a minor is voidable at the minor's election . The minor
can choose to affirm or disaffirm the contract upon reaching majority, but the adult
party cannot void it. This protects minors from being bound by contracts they may
not fully understand.
Question 5
A contract in which there is fraud by either commission or omission is voidable by
the _________?
A. Either the non-fraudulent or fraudulent party
B. Fraudulent party
C. The contract is not voidable
D. Non-fraudulent party
Correct ,,,ANSWER,,,: D. Non-fraudulent party
, Rationale: When fraud occurs, only the innocent party (the non-fraudulent party)
has the right to void the contract . The fraudulent party cannot benefit from their
own wrong by voiding the contract. This principle prevents those who commit
fraud from using it as a defense.
Question 6
A contract in which each party promises to do something is referred to as a
_________?
A. Unilateral contract
B. Bilateral contract
C. Executed contract
D. Void contract
Correct ,,,ANSWER,,,: B. Bilateral contract
Rationale: A bilateral contract involves mutual promises where each party is
obligated to perform . A real estate sales contract is a bilateral contract—the buyer
promises to pay, and the seller promises to convey title. This is distinguished from
a unilateral contract where only one party makes a promise.
Question 7
When one party promises to do something if the other party performs a certain act,
but the other party does not promise to perform it, it is referred to as a _________?
A. Bilateral contract
B. Void contract
