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Champions Promulgated Contract Forms
Questions with Detailed Verified Answers
(100% Correct Answers) /Already Graded
A+
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 assent, consideration and ____________.
(a) Signature of witnesses
(b) In writing
(c) Acknowledgment by a notary
(d) Recording in county clerk's office
Ans: (b) In writing
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
(c) Voidable
(d) Void
Ans: (d) Void
Tammy is interested in Jolene's property, but wants to research the zoning laws before purchasing.
She has and agreement in which she paid a fee of $10,000 to keep the property available for a
preset price for 30 days, during which time Jolene cannot sell the property to another. Tammy,
however, can change her mind if she likes. What kind of agreement is this?
(a) Bilateral
(b) Oral
(c) Option
(d) Void
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Ans: (c) Option
All oral negotiations are _________.
(a) Voluntary
(b) Involuntary
(c) Executory
(d) Binding
Ans: (a) Voluntary
The _________ assumes primary liability for performance under the contract.
(a) Assignee
(b) Assignor
(c) Broker-Lawyer Committee
(d) Title company
Ans: (a) Assignee
Mutual consent is completed by the process of __________.
(a) Consideration
(b) Offer and acceptance
(c) Default
(d) Fraud
Ans: (b) Offer and acceptance
Which of the following is the buyer's primary obligation toward the performance of a real estate
contract?
(a) Convey satisfactory title
(b) Negotiate a lower price
(c) Be ready to pay the agreed-upon price
(d) All of these are the buyer's obligations toward the performance of a real estate contract
Ans: (c) Be ready to pay the agreed-upon price
Which of the following contracts is NOT assignable?
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(a) Most purchase contracts
(b) Leases
(c) Contracts for personal services
(d) All of these are assignable
Ans: (c) Contracts for personal services
What is the statute of limitations in Texas to file suit in court for damages for breach of a written
agreement?
(a) 2 years
(b) 90 days
(c) 4 years
(d) There is no statute of limitations in Texas
Ans: (c) 4 years
Bertha, a law school dropout is a licensed real estate agent who wants to make sure that she is
providing her buyers with the best representation possible, so she drafts an iron-clad purchase contract
for them. Bertha's sponsoring broker is horrified because Bertha is guilty of ___________.
(a) Mortgage Fraud
(b) Conspiracy
(c) Unauthorized Practice of Law
(d) Fair Housing Violations
Ans: (c) Unauthorized Practice of Law
Which of the following correctly defines a counteroffer?
(a) A rejection of the original offer coupled with a new offer.
(b) The party to whom the offer is made.
(c) The moment when an offer is presumed to have been delivered to the principal when it is delivered
by the agent
(d) The right to purchase leased property by matching or bettering any offer before the property will
be sold to someone else.
Ans: (a) A rejection of the original offer coupled with a new offer.
The party to whom an offer is submitted is known as the _____________.
Champions Promulgated Contract Forms
Questions with Detailed Verified Answers
(100% Correct Answers) /Already Graded
A+
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 assent, consideration and ____________.
(a) Signature of witnesses
(b) In writing
(c) Acknowledgment by a notary
(d) Recording in county clerk's office
Ans: (b) In writing
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
(c) Voidable
(d) Void
Ans: (d) Void
Tammy is interested in Jolene's property, but wants to research the zoning laws before purchasing.
She has and agreement in which she paid a fee of $10,000 to keep the property available for a
preset price for 30 days, during which time Jolene cannot sell the property to another. Tammy,
however, can change her mind if she likes. What kind of agreement is this?
(a) Bilateral
(b) Oral
(c) Option
(d) Void
, Page |2
Ans: (c) Option
All oral negotiations are _________.
(a) Voluntary
(b) Involuntary
(c) Executory
(d) Binding
Ans: (a) Voluntary
The _________ assumes primary liability for performance under the contract.
(a) Assignee
(b) Assignor
(c) Broker-Lawyer Committee
(d) Title company
Ans: (a) Assignee
Mutual consent is completed by the process of __________.
(a) Consideration
(b) Offer and acceptance
(c) Default
(d) Fraud
Ans: (b) Offer and acceptance
Which of the following is the buyer's primary obligation toward the performance of a real estate
contract?
(a) Convey satisfactory title
(b) Negotiate a lower price
(c) Be ready to pay the agreed-upon price
(d) All of these are the buyer's obligations toward the performance of a real estate contract
Ans: (c) Be ready to pay the agreed-upon price
Which of the following contracts is NOT assignable?
, Page |3
(a) Most purchase contracts
(b) Leases
(c) Contracts for personal services
(d) All of these are assignable
Ans: (c) Contracts for personal services
What is the statute of limitations in Texas to file suit in court for damages for breach of a written
agreement?
(a) 2 years
(b) 90 days
(c) 4 years
(d) There is no statute of limitations in Texas
Ans: (c) 4 years
Bertha, a law school dropout is a licensed real estate agent who wants to make sure that she is
providing her buyers with the best representation possible, so she drafts an iron-clad purchase contract
for them. Bertha's sponsoring broker is horrified because Bertha is guilty of ___________.
(a) Mortgage Fraud
(b) Conspiracy
(c) Unauthorized Practice of Law
(d) Fair Housing Violations
Ans: (c) Unauthorized Practice of Law
Which of the following correctly defines a counteroffer?
(a) A rejection of the original offer coupled with a new offer.
(b) The party to whom the offer is made.
(c) The moment when an offer is presumed to have been delivered to the principal when it is delivered
by the agent
(d) The right to purchase leased property by matching or bettering any offer before the property will
be sold to someone else.
Ans: (a) A rejection of the original offer coupled with a new offer.
The party to whom an offer is submitted is known as the _____________.
