Law of Contract Final exam ACTUAL
QUESTIONS AND CORRECT ANSWERS
This generally refers to a governmental entity's legal authority to force a private landowner to
sell his or her real property for public use.
A) Condemnation
B) Taxation
C) Police power
D) Eminent domain - Correct answers✔✔D) Eminent domain
Precedents are determined by:
A) Statutory Law
B) Case law
C) TRELA
D) DTPA - Correct answers✔✔Wrong A) Statutory Law?
This estate may be terminated at will of either party. It has no duration limitation.
A) Estate at will
B) Estate from period to period
C) Estate for years
D) Freehold estate - Correct answers✔✔A) Estate at will?
,A form of shared property ownership in which rights vest in several owners for a specified period
each year.
A) Cooperatives
B) Time shares
C) Townhomes
D) Condominiums - Correct answers✔✔B) Time shares
The law that established the Texas Real Estate Commission.
A) TREC
B) TRELA
C) TAR
D) TCEQ - Correct answers✔✔B) TRELA
C) TAR wrong
This act provides a three day right of rescission.
A) Equal Credit Opportunity Act
B) Truth-in-Lending
C) RESPA
D) Fair Housing Act - Correct answers✔✔B) Truth-in-Lending
Agency law consist of the:
, A) Texas law of agency
B) Texas Real Estate License Act
C) Texas Real Estate Commission
D) Texas Constitution - Correct answers✔✔B) Texas Real Estate License Act
In owner financing, who receives the DEED OF TRUST?
A) Buyer
B) Escrow officer
C) Seller
D) Mortgage company - Correct answers✔✔C) Seller
An automatic legal process by which an effect or result, or liability or right, is created of
extinguished without the consent of either party.
A) Default
B) Operation of law
C) Breach
D) Option - Correct answers✔✔wrong C) Breach
wrong A) Default
Who is responsible to search and examine the public records for information related to the
property's title?
A) Buyer
B) Broker
QUESTIONS AND CORRECT ANSWERS
This generally refers to a governmental entity's legal authority to force a private landowner to
sell his or her real property for public use.
A) Condemnation
B) Taxation
C) Police power
D) Eminent domain - Correct answers✔✔D) Eminent domain
Precedents are determined by:
A) Statutory Law
B) Case law
C) TRELA
D) DTPA - Correct answers✔✔Wrong A) Statutory Law?
This estate may be terminated at will of either party. It has no duration limitation.
A) Estate at will
B) Estate from period to period
C) Estate for years
D) Freehold estate - Correct answers✔✔A) Estate at will?
,A form of shared property ownership in which rights vest in several owners for a specified period
each year.
A) Cooperatives
B) Time shares
C) Townhomes
D) Condominiums - Correct answers✔✔B) Time shares
The law that established the Texas Real Estate Commission.
A) TREC
B) TRELA
C) TAR
D) TCEQ - Correct answers✔✔B) TRELA
C) TAR wrong
This act provides a three day right of rescission.
A) Equal Credit Opportunity Act
B) Truth-in-Lending
C) RESPA
D) Fair Housing Act - Correct answers✔✔B) Truth-in-Lending
Agency law consist of the:
, A) Texas law of agency
B) Texas Real Estate License Act
C) Texas Real Estate Commission
D) Texas Constitution - Correct answers✔✔B) Texas Real Estate License Act
In owner financing, who receives the DEED OF TRUST?
A) Buyer
B) Escrow officer
C) Seller
D) Mortgage company - Correct answers✔✔C) Seller
An automatic legal process by which an effect or result, or liability or right, is created of
extinguished without the consent of either party.
A) Default
B) Operation of law
C) Breach
D) Option - Correct answers✔✔wrong C) Breach
wrong A) Default
Who is responsible to search and examine the public records for information related to the
property's title?
A) Buyer
B) Broker
