TEXAS LAW OF CONTRACTS FINAL EXAM
(ACTUAL 2025) 60 VERIFIED QUESTIONS
CORRECTLY ANSWERED
In what kind of state does a mortgagor retain legal and
equitable title to a property?
A)Title theory
B)Modified title theory
C)Lien theory
D)Modified lien theory - <<<Answers>>>C) Lien theory
Which of the following is TRUE regarding promissory notes?
A)It is the borrower's personal promise to repay a debt
according to agreed terms
B)It is the seller's personal promise to sell the property to the
buyer
C)It is also called a security
D)It protects the borrower against a cloud on the title -
<<<Answers>>>A) It is the borrower's personal promise to
repay a debt according to agreed terms
A voidable contract ______.
A)has no legal effect
, TEXAS LAW OF CONTRACTS FINAL EXAM
(ACTUAL 2025) 60 VERIFIED QUESTIONS
CORRECTLY ANSWERED
B)may be disaffirmed by one party
C)is oral
D)has not been signed by all parties - <<<Answers>>>B)
May be disaffirmed by one party
Fannie Mae's secondary market loan packages include
______.
A)special assistance loans
B)only conventional loans
C)only FHA loans
D)conventional, VA, and FHA loans - <<<Answers>>>D)
Conventional, VA, and FHA loans
During the option period, a buyer may terminate the contract
for ______.
A)any reason
B)reasonable cause
C)justifiable reason
D)equitable cause - <<<Answers>>>A) Any reason
, TEXAS LAW OF CONTRACTS FINAL EXAM
(ACTUAL 2025) 60 VERIFIED QUESTIONS
CORRECTLY ANSWERED
If, after the sales contract is signed, the seller decides not to
sell, the ______.
A)seller may cancel the contract and retain the buyer's earnest
money deposit
B)buyer may both get his earnest money back and file for
specific performance
C)buyer may institute a suit for specific performance of the
contract and/or for money damages
D)real estate agent forfeits a right to a commission -
<<<Answers>>>C) Buyer may institute a suit for specific
performance of the contract and/or for money damages
During the period after a real estate sales contract is accepted
but before the delivery of the deed, the status of the contract is
______.
A)executed
B)executory
C)unilateral
D)implied - <<<Answers>>>B) Executory
Which of the following is commonly used to show proof of
ownership?
(ACTUAL 2025) 60 VERIFIED QUESTIONS
CORRECTLY ANSWERED
In what kind of state does a mortgagor retain legal and
equitable title to a property?
A)Title theory
B)Modified title theory
C)Lien theory
D)Modified lien theory - <<<Answers>>>C) Lien theory
Which of the following is TRUE regarding promissory notes?
A)It is the borrower's personal promise to repay a debt
according to agreed terms
B)It is the seller's personal promise to sell the property to the
buyer
C)It is also called a security
D)It protects the borrower against a cloud on the title -
<<<Answers>>>A) It is the borrower's personal promise to
repay a debt according to agreed terms
A voidable contract ______.
A)has no legal effect
, TEXAS LAW OF CONTRACTS FINAL EXAM
(ACTUAL 2025) 60 VERIFIED QUESTIONS
CORRECTLY ANSWERED
B)may be disaffirmed by one party
C)is oral
D)has not been signed by all parties - <<<Answers>>>B)
May be disaffirmed by one party
Fannie Mae's secondary market loan packages include
______.
A)special assistance loans
B)only conventional loans
C)only FHA loans
D)conventional, VA, and FHA loans - <<<Answers>>>D)
Conventional, VA, and FHA loans
During the option period, a buyer may terminate the contract
for ______.
A)any reason
B)reasonable cause
C)justifiable reason
D)equitable cause - <<<Answers>>>A) Any reason
, TEXAS LAW OF CONTRACTS FINAL EXAM
(ACTUAL 2025) 60 VERIFIED QUESTIONS
CORRECTLY ANSWERED
If, after the sales contract is signed, the seller decides not to
sell, the ______.
A)seller may cancel the contract and retain the buyer's earnest
money deposit
B)buyer may both get his earnest money back and file for
specific performance
C)buyer may institute a suit for specific performance of the
contract and/or for money damages
D)real estate agent forfeits a right to a commission -
<<<Answers>>>C) Buyer may institute a suit for specific
performance of the contract and/or for money damages
During the period after a real estate sales contract is accepted
but before the delivery of the deed, the status of the contract is
______.
A)executed
B)executory
C)unilateral
D)implied - <<<Answers>>>B) Executory
Which of the following is commonly used to show proof of
ownership?
