Texas Promulgated Contract Forms Exam 2025: Practice Questions & Study Guide

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Texas Promulgated Contract Forms EXAM Questions &

Answers (Latest 2025)

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

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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

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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.

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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