Promulgated Contracts Exam Questions
With Correct Answers 2024
Contract: .- .correct .answer.A .legally .binding .and .enforceable .agreement .to .do .or .not .to .do
.a .specific .thing
Promulgated .Contract: .- .correct .answer.A .contract .that .has .been .approved .and .is
.required .to .be .used .by .license .holders
In .Texas, .what .are .the .two .entities .that .promulgate .contracts? .- .correct .answer.TREC
.and .TAR
In .a .real .estate .sale, .the .license .holder .must .use .the .appropriate .TREC-promulgated
.form .UNLESS .another .contract .form .is .required .by .the .buyer's .lender. .- .correct
.answer.FALSE .
(Explanation: .In .a .real .estate .sale, .the .license .holder .must .use .the .appropriate .TREC-
promulgated .form .UNLESS .another .contract .form .is .required .by .the .property .owner. .The
.buyer's .lender .has .no .influence .over .the .sales .contracts .used .in .a .transaction.)
A .license .holder .should .___________. .- .correct .answer.disclose .all .material .facts .to .the
.client
Legally .Competent: .- .correct .answer.When .an .individual .has .reached .the .age .of .majority
.(18 .years .of .age) .and .has .not .been .declared .mentally .incompetent .by .a .judge
Void .Contract: .- .correct .answer.A .contract .that .has .no .legal .effect
Voidable .Contract: .- .correct .answer.When .one .or .more .of .the .parties .has .the .authority .to
.rescind .the .contract
Consideration: .- .correct .answer.A .valuable .item .that .each .party .exchanges .in .order .to
.demonstrate .that .they .agree .to .the .contract .terms
Which .of .the .following .is .TRUE .of .mutual .agreement? .- .correct .answer.There .cannot .be
.mistakes .in .the .terms .and .conditions
All .of .the .following .are .essential .elements .of .a .valid .contract .EXCEPT: .- .correct
.answer.earnest .money
,What .is .NOT .an .element .of .a .valid .contract? .- .correct .answer.earnest .money
A .law .that .requires .real .estate .contracts .to .be .in .writing .is .the .______. .- .correct
.answer.statute .of .Frauds
Valid .Contract: .- .correct .answer.Legal .agreement .meeting .all .the .essential, .basic
.requirements .of .the .law
Unenforceable .Contract: .- .correct .answer.A .contract .that .cannot .be .enforced .by .the
.courts
5 .essential .elements .of .a .valid .contract: .- .correct .answer.1.Mutual .assent .(100%
.agreement)
2.Legally .competent .parties .(18, .sane, .and .sober)
3.Consideration .(an .exchange .of .something .of .value)
4.Lawful .objective .(the .purpose .of .the .contract .must .be .legal)
5.In .writing .(a .written .and .signed .offer .and .acceptance)
If .two .people .have .a .contract .for .one .to .sell .illegal .drugs .to .the .other, .the .contract .would
.be: .- .correct .answer.Void
A .contract .that .cannot .be .enforced .by .the .courts .is ._____. .- .correct
.answer.unenforceable
Executory .Contract: .- .correct .answer.A .contract .that .is .not .completely .executed .or
.performed
Executed .Contract: .- .correct .answer.A .contract .in .which .all .terms .have .been .fulfilled .by .all
.parties
A .contract .that .is ."pending" .is .__________________. .- .correct .answer.executory
The .difference .between .an .executory .contract .and .an .executed .contract .is .that .the
.executed .contract .is ._____. .- .correct .answer.closed
The .best .way .for .any .contract .to .terminate .is .to .become ._________________. .- .correct
.answer.executed
According .to .Texas .state .law, .a .contract .for .deed .and .a .lease .with .an .option .to .buy .are
.considered .___________. .- .correct .answer.executory .contracts
Bilateral .Contract: .- .correct .answer.A .contract .in .which .one .party .must .promise .to .do
.something .for .another .party .and .that .party .must .promise .to .do .something .for .the .first
.party
, Unilateral .Contract: .- .correct .answer.A .contract .made .between .two .or .more .parties .in
.which .only .one .of .those .parties .makes .a .promise .or .otherwise .accepts .an .obligation
An .option .to .buy .contract .is .a(n)_________________. .- .correct .answer.Unilateral
.Contract
Which .of .the .following .is .a .bilateral .contract? .- .correct .answer.leases
If .a .contract .says ."time .is .of .the .essence," .that .means .that .it .is .due: .- .correct .answer.as
.soon .as .possible
By .whom .should .the .language ."time .of .the .essence" .be .added? .- .correct .answer.an
.attorney
Addenda: .- .correct .answer.Materials .added .to .and .included .in .the .initial .contract .that
.provide .more .information .on .the .transaction
Amendment: .- .correct .answer.Items .that .are .attached .to .the .original .document .and
.should .never .be .changed .after .the .document .has .been .signed .and .accepted
When .filling .out .the .nine .checkable .box .options .on .the .Amendment .to .Contract .form,
.more .than .one .box .can .be .checked. .- .correct .answer.TRUE
In .which .situation .would .an .amendment .go .into .effect? .- .correct .answer.the .parties .sign
.to .amendment
TREC .promulgated .addenda .are .added .to .the .contract .AFTER .it .has .been .signed. .-
.correct .answer.FALSE .
(Explanation: .Addenda .are .added .to .the .contract .BEFORE .the .contract .has .been .signed.
.Amendments .are .added .afterwards.)
Performance: .- .correct .answer.The .responsibility .of .all .the .parties .to .carry .out .their .part .of
.a .contract
Quitclaim .Deed: .- .correct .answer.Transfers .ownership .of .whatever .the .grantor .owns .but
.make .no .guarantee .of .ownership .and .no .promise .to .defend
Novation: .- .correct .answer.The .substitution .of .a .new .contract .for .an .existing .contract,
.relieves .the .original .party .of .liability
Obligations .often .times .must .be .completed .within .a .certain .number .of .days .of ._____. .-
.correct .answer.the .effective .date
If .one .of .the .parties .defaults .and .the .non-defaulting .party .accepts .the .earnest .money .as
.damages, .they .may .also: .- .correct .answer.Do .nothing .more, .as .the .contract .is
.terminated.
With Correct Answers 2024
Contract: .- .correct .answer.A .legally .binding .and .enforceable .agreement .to .do .or .not .to .do
.a .specific .thing
Promulgated .Contract: .- .correct .answer.A .contract .that .has .been .approved .and .is
.required .to .be .used .by .license .holders
In .Texas, .what .are .the .two .entities .that .promulgate .contracts? .- .correct .answer.TREC
.and .TAR
In .a .real .estate .sale, .the .license .holder .must .use .the .appropriate .TREC-promulgated
.form .UNLESS .another .contract .form .is .required .by .the .buyer's .lender. .- .correct
.answer.FALSE .
(Explanation: .In .a .real .estate .sale, .the .license .holder .must .use .the .appropriate .TREC-
promulgated .form .UNLESS .another .contract .form .is .required .by .the .property .owner. .The
.buyer's .lender .has .no .influence .over .the .sales .contracts .used .in .a .transaction.)
A .license .holder .should .___________. .- .correct .answer.disclose .all .material .facts .to .the
.client
Legally .Competent: .- .correct .answer.When .an .individual .has .reached .the .age .of .majority
.(18 .years .of .age) .and .has .not .been .declared .mentally .incompetent .by .a .judge
Void .Contract: .- .correct .answer.A .contract .that .has .no .legal .effect
Voidable .Contract: .- .correct .answer.When .one .or .more .of .the .parties .has .the .authority .to
.rescind .the .contract
Consideration: .- .correct .answer.A .valuable .item .that .each .party .exchanges .in .order .to
.demonstrate .that .they .agree .to .the .contract .terms
Which .of .the .following .is .TRUE .of .mutual .agreement? .- .correct .answer.There .cannot .be
.mistakes .in .the .terms .and .conditions
All .of .the .following .are .essential .elements .of .a .valid .contract .EXCEPT: .- .correct
.answer.earnest .money
,What .is .NOT .an .element .of .a .valid .contract? .- .correct .answer.earnest .money
A .law .that .requires .real .estate .contracts .to .be .in .writing .is .the .______. .- .correct
.answer.statute .of .Frauds
Valid .Contract: .- .correct .answer.Legal .agreement .meeting .all .the .essential, .basic
.requirements .of .the .law
Unenforceable .Contract: .- .correct .answer.A .contract .that .cannot .be .enforced .by .the
.courts
5 .essential .elements .of .a .valid .contract: .- .correct .answer.1.Mutual .assent .(100%
.agreement)
2.Legally .competent .parties .(18, .sane, .and .sober)
3.Consideration .(an .exchange .of .something .of .value)
4.Lawful .objective .(the .purpose .of .the .contract .must .be .legal)
5.In .writing .(a .written .and .signed .offer .and .acceptance)
If .two .people .have .a .contract .for .one .to .sell .illegal .drugs .to .the .other, .the .contract .would
.be: .- .correct .answer.Void
A .contract .that .cannot .be .enforced .by .the .courts .is ._____. .- .correct
.answer.unenforceable
Executory .Contract: .- .correct .answer.A .contract .that .is .not .completely .executed .or
.performed
Executed .Contract: .- .correct .answer.A .contract .in .which .all .terms .have .been .fulfilled .by .all
.parties
A .contract .that .is ."pending" .is .__________________. .- .correct .answer.executory
The .difference .between .an .executory .contract .and .an .executed .contract .is .that .the
.executed .contract .is ._____. .- .correct .answer.closed
The .best .way .for .any .contract .to .terminate .is .to .become ._________________. .- .correct
.answer.executed
According .to .Texas .state .law, .a .contract .for .deed .and .a .lease .with .an .option .to .buy .are
.considered .___________. .- .correct .answer.executory .contracts
Bilateral .Contract: .- .correct .answer.A .contract .in .which .one .party .must .promise .to .do
.something .for .another .party .and .that .party .must .promise .to .do .something .for .the .first
.party
, Unilateral .Contract: .- .correct .answer.A .contract .made .between .two .or .more .parties .in
.which .only .one .of .those .parties .makes .a .promise .or .otherwise .accepts .an .obligation
An .option .to .buy .contract .is .a(n)_________________. .- .correct .answer.Unilateral
.Contract
Which .of .the .following .is .a .bilateral .contract? .- .correct .answer.leases
If .a .contract .says ."time .is .of .the .essence," .that .means .that .it .is .due: .- .correct .answer.as
.soon .as .possible
By .whom .should .the .language ."time .of .the .essence" .be .added? .- .correct .answer.an
.attorney
Addenda: .- .correct .answer.Materials .added .to .and .included .in .the .initial .contract .that
.provide .more .information .on .the .transaction
Amendment: .- .correct .answer.Items .that .are .attached .to .the .original .document .and
.should .never .be .changed .after .the .document .has .been .signed .and .accepted
When .filling .out .the .nine .checkable .box .options .on .the .Amendment .to .Contract .form,
.more .than .one .box .can .be .checked. .- .correct .answer.TRUE
In .which .situation .would .an .amendment .go .into .effect? .- .correct .answer.the .parties .sign
.to .amendment
TREC .promulgated .addenda .are .added .to .the .contract .AFTER .it .has .been .signed. .-
.correct .answer.FALSE .
(Explanation: .Addenda .are .added .to .the .contract .BEFORE .the .contract .has .been .signed.
.Amendments .are .added .afterwards.)
Performance: .- .correct .answer.The .responsibility .of .all .the .parties .to .carry .out .their .part .of
.a .contract
Quitclaim .Deed: .- .correct .answer.Transfers .ownership .of .whatever .the .grantor .owns .but
.make .no .guarantee .of .ownership .and .no .promise .to .defend
Novation: .- .correct .answer.The .substitution .of .a .new .contract .for .an .existing .contract,
.relieves .the .original .party .of .liability
Obligations .often .times .must .be .completed .within .a .certain .number .of .days .of ._____. .-
.correct .answer.the .effective .date
If .one .of .the .parties .defaults .and .the .non-defaulting .party .accepts .the .earnest .money .as
.damages, .they .may .also: .- .correct .answer.Do .nothing .more, .as .the .contract .is
.terminated.
