TEXAS PROMULGATED CONTRACT FORM EXAM ACTUAL EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS) |A+GRADE
A competent party is one that is: -(ANSWER)At least 18 years of age
Mentally competent
Cannot be temporary incompetent
The Texas Real Estate Commission regulates a licensee in which of the following situations? -
(ANSWER)When the licensee is selling a house for a client
What is a legal agreement between parties to do (performance) or not to do (forbearance) a certain act
for consideration? -(ANSWER)A contract
All of the following are necessary to create a valid contract except which one? -(ANSWER)Earnest money
What law requires all contracts for real property to be in writing to be enforceable? -(ANSWER)Statute
of Frauds
Which of the following would be an example of "good consideration"? -(ANSWER)Love of a friend
What is duress? -(ANSWER)Use of force
What is it called when a person listens to both sides of the situation and makes a decision. His or her
decision is binding and court action cannot be pursued. -(ANSWER)Arbitration
What is defined as agreement to all the terms by all the parties of the contract? -(ANSWER)Mutual
assent
,TEXAS PROMULGATED CONTRACT FORM EXAM ACTUAL EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS) |A+GRADE
When all promises in a contract have been met, that contract is called what? -(ANSWER)Executed
What is a contract called which defers material action by either party into the future? -
(ANSWER)Executory
When a written agreement is legal and every item is completely agreed to, it is said to be which of the
following? -(ANSWER)Valid
When an essential element is missing in an agreement and the courts would not hold it as a contract,
then the agreement would be: -(ANSWER)Void
When one party could change their mind and exit a contract, it is said to be: -(ANSWER)Voidable
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? -
(ANSWER)Unenforceable
When a change needs to be made to the TREC ONE TO FOUR FAMILY RESIDENTIAL CONTRACT (RESALE)
TREC 20-14, what is the best way to handle it? -(ANSWER)Changes should be made using the
"Amendment to Contract" addendum.
For which of the following reasons could a contract need to be changed? -(ANSWER)For repairs
For financing
For termination of the option
, TEXAS PROMULGATED CONTRACT FORM EXAM ACTUAL EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS) |A+GRADE
What law requires any amendment or addenda used must be in writing and signed by both parties to be
enforceable? -(ANSWER)Statute of Frauds
Which of the following is the correct definition of the "Four Corners Doctrine"? -(ANSWER)The
interpretation of any disputed clause in a contract will be influenced by the document as a whole.
What rule in contract cases prevents a party to a written contract from presenting oral evidence that
contradicts or adds to the written terms of the contract that appears to be whole? -(ANSWER)Parol
Evidence Rule
How long is the Statute of Limitations for a written contract in Texas? -(ANSWER)Four years
How long is the Statute of Limitations for an oral contract in Texas? -(ANSWER)Four years
Which of the following items would need to be disclosed by a seller prior to selling his or her property? -
(ANSWER)Asbestos
Lead-based paint
Mold
What type of contract dispute results in going to court and usually involves attorneys and research? -
(ANSWER)Litigation
How difficult was the real estate license to acquire prior to the 1930's? -(ANSWER)There was no test.
CORRECT ANSWERS (VERIFIED ANSWERS) |A+GRADE
A competent party is one that is: -(ANSWER)At least 18 years of age
Mentally competent
Cannot be temporary incompetent
The Texas Real Estate Commission regulates a licensee in which of the following situations? -
(ANSWER)When the licensee is selling a house for a client
What is a legal agreement between parties to do (performance) or not to do (forbearance) a certain act
for consideration? -(ANSWER)A contract
All of the following are necessary to create a valid contract except which one? -(ANSWER)Earnest money
What law requires all contracts for real property to be in writing to be enforceable? -(ANSWER)Statute
of Frauds
Which of the following would be an example of "good consideration"? -(ANSWER)Love of a friend
What is duress? -(ANSWER)Use of force
What is it called when a person listens to both sides of the situation and makes a decision. His or her
decision is binding and court action cannot be pursued. -(ANSWER)Arbitration
What is defined as agreement to all the terms by all the parties of the contract? -(ANSWER)Mutual
assent
,TEXAS PROMULGATED CONTRACT FORM EXAM ACTUAL EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS) |A+GRADE
When all promises in a contract have been met, that contract is called what? -(ANSWER)Executed
What is a contract called which defers material action by either party into the future? -
(ANSWER)Executory
When a written agreement is legal and every item is completely agreed to, it is said to be which of the
following? -(ANSWER)Valid
When an essential element is missing in an agreement and the courts would not hold it as a contract,
then the agreement would be: -(ANSWER)Void
When one party could change their mind and exit a contract, it is said to be: -(ANSWER)Voidable
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? -
(ANSWER)Unenforceable
When a change needs to be made to the TREC ONE TO FOUR FAMILY RESIDENTIAL CONTRACT (RESALE)
TREC 20-14, what is the best way to handle it? -(ANSWER)Changes should be made using the
"Amendment to Contract" addendum.
For which of the following reasons could a contract need to be changed? -(ANSWER)For repairs
For financing
For termination of the option
, TEXAS PROMULGATED CONTRACT FORM EXAM ACTUAL EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS) |A+GRADE
What law requires any amendment or addenda used must be in writing and signed by both parties to be
enforceable? -(ANSWER)Statute of Frauds
Which of the following is the correct definition of the "Four Corners Doctrine"? -(ANSWER)The
interpretation of any disputed clause in a contract will be influenced by the document as a whole.
What rule in contract cases prevents a party to a written contract from presenting oral evidence that
contradicts or adds to the written terms of the contract that appears to be whole? -(ANSWER)Parol
Evidence Rule
How long is the Statute of Limitations for a written contract in Texas? -(ANSWER)Four years
How long is the Statute of Limitations for an oral contract in Texas? -(ANSWER)Four years
Which of the following items would need to be disclosed by a seller prior to selling his or her property? -
(ANSWER)Asbestos
Lead-based paint
Mold
What type of contract dispute results in going to court and usually involves attorneys and research? -
(ANSWER)Litigation
How difficult was the real estate license to acquire prior to the 1930's? -(ANSWER)There was no test.
