Texas Law of
Contracts Exam
Questions Verified
and Provided with
A+ Graded
Answers| Latest
Updated 2026
,Contingencies that often appear as part of a standard sales contract include all of these
EXCEPT
A)
title contingency.
B)
financing contingency.
C)
appraisal contingency.
D)
hazardous material inspection contingency.
hazardous material inspection contingency.
The answer is hazardous material inspection contingency. Financing, appraisal, and title
contingencies are common in standard sales contract forms; a contingency for the
presence of any type of hazardous material would only occur if a particular buyer had
some concerns.
In a loan that requires periodic payments that do not fully amortize the loan balance
by the final payment, what term BEST describes the final payment?
A)
Variable
B)
Acceleration
C)
Balloon
D)
Adjustment
C)
Balloon
The answer is balloon. A balloon note, also called a partially amortized note, calls
for monthly payments that are not sufficient to pay off the loan. At the end of the
specified term of the loan, the final payment will be large as it is for the remainder
of the loan. A balloon note may call for partially amortized payments, or may be
for interest only.
, An encumbrance is NOT
a A)
claim or burden to ownership of real and personal
property. B)
claim on personal property
only. C)
claim or burden on real property
only. D)
lien on real or personal property.
C)
claim or burden on real property only.
The answer is claim or burden on real property only. An encumbrance is a claim,
charge, or liability that attaches to real or personal property.
Contracts Exam
Questions Verified
and Provided with
A+ Graded
Answers| Latest
Updated 2026
,Contingencies that often appear as part of a standard sales contract include all of these
EXCEPT
A)
title contingency.
B)
financing contingency.
C)
appraisal contingency.
D)
hazardous material inspection contingency.
hazardous material inspection contingency.
The answer is hazardous material inspection contingency. Financing, appraisal, and title
contingencies are common in standard sales contract forms; a contingency for the
presence of any type of hazardous material would only occur if a particular buyer had
some concerns.
In a loan that requires periodic payments that do not fully amortize the loan balance
by the final payment, what term BEST describes the final payment?
A)
Variable
B)
Acceleration
C)
Balloon
D)
Adjustment
C)
Balloon
The answer is balloon. A balloon note, also called a partially amortized note, calls
for monthly payments that are not sufficient to pay off the loan. At the end of the
specified term of the loan, the final payment will be large as it is for the remainder
of the loan. A balloon note may call for partially amortized payments, or may be
for interest only.
, An encumbrance is NOT
a A)
claim or burden to ownership of real and personal
property. B)
claim on personal property
only. C)
claim or burden on real property
only. D)
lien on real or personal property.
C)
claim or burden on real property only.
The answer is claim or burden on real property only. An encumbrance is a claim,
charge, or liability that attaches to real or personal property.
