TEXAS PROMULGATED CONTRACT FORMS | TOP SCORES
MADE SIMPLE | TRUSTED TEST SOLUTIONS!
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
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
1
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,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
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
2
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, How difficult was the real estate license to acquire prior to the 1930's? Answer: There
was no test.
The Texas Real Estate License Act was formerly known as Answer: the Real Estate
Dealer's License Act.
What damages could a seller possibly claim if the buyer is in breach of contract?
Answer: Loss of marketing time
Any fees actually paid
Mental duress
What might be a reason for the necessity to change the closing date of a contract?
Answer: The repairs will take longer than anticipated.
The seller needs more time to find another home.
The buyer cannot get out of his or her lease.
What repairs might be noted on the Texas Real Estate Commission Amendment to
Contract? Answer: Swimming pool has missing tiles that are to be replaced.
The sink in the main bathroom is cracked and is to be replaced.
Fix leaky pipe in the laundry room.
How many amendments are allowed on a valid contract? Answer: Multiple
What is the legal age in Texas to enter into a valid, binding contract? Answer: 18
Which of these forms is a Texas Real Estate Commission (TREC) promulgated form?
Answer: New Home Contract (Completed Construction)
If both the buyer and seller agree to have the real estate professional write a contract
for their specific situation and will put this request in writing, can the agent then write the
contract for the customers? Answer: Not under any circumstances
Which of the following is true? Answer: A real estate licensee may give advice to their
clients
What is an error in the meaning of words, laws, or facts which causes one or both
parties to enter into the contract without fully understanding the outcomes or
responsibilities implied by the contract? Answer: Mistake
Which of the following is a real estate agent not allowed to do? Answer: An agent
acting properly should always include all names including nick names and fictitious
names as well as full names for the parties of a contract.
3
APPHIA - Crafted with Care and Precision for Academic Excellence.
MADE SIMPLE | TRUSTED TEST SOLUTIONS!
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
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
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
,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
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
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
, How difficult was the real estate license to acquire prior to the 1930's? Answer: There
was no test.
The Texas Real Estate License Act was formerly known as Answer: the Real Estate
Dealer's License Act.
What damages could a seller possibly claim if the buyer is in breach of contract?
Answer: Loss of marketing time
Any fees actually paid
Mental duress
What might be a reason for the necessity to change the closing date of a contract?
Answer: The repairs will take longer than anticipated.
The seller needs more time to find another home.
The buyer cannot get out of his or her lease.
What repairs might be noted on the Texas Real Estate Commission Amendment to
Contract? Answer: Swimming pool has missing tiles that are to be replaced.
The sink in the main bathroom is cracked and is to be replaced.
Fix leaky pipe in the laundry room.
How many amendments are allowed on a valid contract? Answer: Multiple
What is the legal age in Texas to enter into a valid, binding contract? Answer: 18
Which of these forms is a Texas Real Estate Commission (TREC) promulgated form?
Answer: New Home Contract (Completed Construction)
If both the buyer and seller agree to have the real estate professional write a contract
for their specific situation and will put this request in writing, can the agent then write the
contract for the customers? Answer: Not under any circumstances
Which of the following is true? Answer: A real estate licensee may give advice to their
clients
What is an error in the meaning of words, laws, or facts which causes one or both
parties to enter into the contract without fully understanding the outcomes or
responsibilities implied by the contract? Answer: Mistake
Which of the following is a real estate agent not allowed to do? Answer: An agent
acting properly should always include all names including nick names and fictitious
names as well as full names for the parties of a contract.
3
APPHIA - Crafted with Care and Precision for Academic Excellence.
