Texas Promulgated Contract Forms Study Guide Exam with Complete Solution

Texas Promulgated Contract Forms Study Guide Exam with Complete Solution

1. What determines whether someone is a competent party?

{{Correct Ans- At least 18 years of age

Mentally competent

Cannot be temporary incompetent

1. What is the minimum age a person must have attained to be of legal age in Texas?

{{Correct Ans- 18

1. To make a valid contract, there must be four elements including Agreement, Competent Parties and Legal objective. Which one is missing? {{Correct Ans- Consideration

1. What are the four basic elements of a contract?

 {{Correct Ans- Agreement

Competency

Consideration

Legal Objective

1. What group administers the Texas Real Estate License Act?

{{Correct Ans- Texas Real Estate Commission

TREC

1. What is misrepresentation? {{Correct Ans- An error

1. What is a court's primary objective when interpreting a contract?

{{Correct Ans- To ascertain and give effect to the intent of the parties

1. What is duress? {{Correct Ans- Use of force

1. What is it called when all terms in a contract are agreed to by all parties of the contract?

{{Correct Ans- Mutual Agreement

1. Consideration is also known as what? {{Correct Ans- Something in exchange for something else

1. What is it called when someone listens to both sides of the situation and makes a decision?

{{Correct Ans- Arbitration

1. Who is responsible for making sure all applicable addenda have been included with the contract? {{Correct Ans- You are, the clients agent

1. What legal status does a void contract have {{Correct Ans- A contract that never existed

1. Fraud in a contract makes it what? {{Correct Ans- Voidable

1. What type of contract is it when two parties agree to and then sign it? {{Correct Ans- Executed

1. What is the definition of an executory contract?

{{Correct Ans- Contract for deed

lease option

purchase option longer than 180 days

1. Who fills out the Seller's Disclosure Notice? {{Correct Ans- The seller

1. What is the best solution to solve a situation when the seller and buyer agree to alter a binding One to Four Family Residential Contract (Resale)?

{{Correct Ans- The amendment must be completed and signed by both parties