1|Page
Texas Promulgated Contracts-CHAMPIONS
STUDY Questions and Answers 100% Pass
The elements of a valid contract are, competent parties, consideration, legal subject matter, in writing,
and ___________.
(a) Default
(b) Mutual consent
(c) Property condition
(d) Recording - ANSWER ✔✔-B
A(n) __________________ contract is defined as a contract that is binding on the parties, with one or more
of the parties having contractual duties that have not yet been performed.
(a) Executory
(b) Executed
Created by Grace Amelia © 2025, All Rights Reserved.
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(c) Bilateral
(d) Void - ANSWER ✔✔-A
In the business of real estate, ___________ is defined as something given in exchange for a promise.
(a) Consideration
(b) Mutual assent
(c) A bribe
(d) Legal subject matter - ANSWER ✔✔-A
The TREC-promulgated contract forms:
(a) Are for optional use by real estate licensees
(b) Are drafted by the Broker-Lawyer Committee
(c) Are promulgated by the legislature
Created by Grace Amelia © 2025, All Rights Reserved.
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(d) Are used in both commercial and residential transactions - ANSWER ✔✔-B
In a lease with a "right of first refusal" provision:
(a) The price is set when the lease agreement is negotiated
(b) The tenant has promised to buy the property
(c) The TREC promulgated form must be used
(d) The tenant has the right to match or better any offer the landlord receives to prevent the property
from being sold to someone else - ANSWER ✔✔-D
TREC has promulgated forms for:
(a) lease purchase transactions
(b) cooperatives
(c) right of first refusal
(d) residential transactions - ANSWER ✔✔-D
Created by Grace Amelia © 2025, All Rights Reserved.
, 4|Page
An offer can be communicated by ___________________.
(a) Phone
(b) Hand delivery
(c) E-mail
(d) All of the above - ANSWER ✔✔-D
The Third Party Financing Addendum For Credit Approval is used when:
(a) The buyer is obtaining FHA financing
(b) Paragraph 4.A(2)(a) is checked in the contract
(c) The buyer is obtaining VA financing
(d) The buyer is obtaining any kind of financing - ANSWER ✔✔-D
In the Third Party Financing Addendum for Credit Approval:
Created by Grace Amelia © 2025, All Rights Reserved.
Texas Promulgated Contracts-CHAMPIONS
STUDY Questions and Answers 100% Pass
The elements of a valid contract are, competent parties, consideration, legal subject matter, in writing,
and ___________.
(a) Default
(b) Mutual consent
(c) Property condition
(d) Recording - ANSWER ✔✔-B
A(n) __________________ contract is defined as a contract that is binding on the parties, with one or more
of the parties having contractual duties that have not yet been performed.
(a) Executory
(b) Executed
Created by Grace Amelia © 2025, All Rights Reserved.
,2|Page
(c) Bilateral
(d) Void - ANSWER ✔✔-A
In the business of real estate, ___________ is defined as something given in exchange for a promise.
(a) Consideration
(b) Mutual assent
(c) A bribe
(d) Legal subject matter - ANSWER ✔✔-A
The TREC-promulgated contract forms:
(a) Are for optional use by real estate licensees
(b) Are drafted by the Broker-Lawyer Committee
(c) Are promulgated by the legislature
Created by Grace Amelia © 2025, All Rights Reserved.
,3|Page
(d) Are used in both commercial and residential transactions - ANSWER ✔✔-B
In a lease with a "right of first refusal" provision:
(a) The price is set when the lease agreement is negotiated
(b) The tenant has promised to buy the property
(c) The TREC promulgated form must be used
(d) The tenant has the right to match or better any offer the landlord receives to prevent the property
from being sold to someone else - ANSWER ✔✔-D
TREC has promulgated forms for:
(a) lease purchase transactions
(b) cooperatives
(c) right of first refusal
(d) residential transactions - ANSWER ✔✔-D
Created by Grace Amelia © 2025, All Rights Reserved.
, 4|Page
An offer can be communicated by ___________________.
(a) Phone
(b) Hand delivery
(c) E-mail
(d) All of the above - ANSWER ✔✔-D
The Third Party Financing Addendum For Credit Approval is used when:
(a) The buyer is obtaining FHA financing
(b) Paragraph 4.A(2)(a) is checked in the contract
(c) The buyer is obtaining VA financing
(d) The buyer is obtaining any kind of financing - ANSWER ✔✔-D
In the Third Party Financing Addendum for Credit Approval:
Created by Grace Amelia © 2025, All Rights Reserved.
