©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 9:46 AM A+
Texas Promulgated Contracts Exam
Questions And Answers |Latest 2025 |
Guaranteed Pass
In 1939, the legislator passed what law? - Answer✔Real Estate Dealers License Act (REDLA)
which meant all RE agents must obtain a license
Competent Parties Summary:(3) - Answer✔Must be 18 + years of age
Must be mentally competent
Cannot be temporary incompetent
The Texas Real Estate Commission regulates a licensee in which of the following situations? -
Answer✔when license sell house for client: which the licensee is acting in a third-party position
What is a legal agreement between parties to do (performance) or not to do (forbearance) a
certain act for consideration? - Answer✔a contract
Mutual Assent Summary (2) - Answer✔Agreement to all the terms
Agreement by all the parties
two types of consideration - Answer✔Valuable consideration is something of value
1
, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 9:46 AM A+
Good consideration is love and affection
Consideration Summary - Answer✔Something given in exchange for something else
Assignment - Answer✔One of the parties to a contract may choose to assign the contract to a
third individual.
Notation - Answer✔write up a new agreement with the existing parties
Mediation(non-binding) - Answer✔the third party mediator is simply a facilitator attempting to
keep both parties talking until they can reach a solution (preferred method)
no schooling needed
Arbitration - Answer✔the arbitrator listens to both sides of the situation and makes a decision.
His or her decision is binding and court action cannot be pursued.
require law degree/similar
Litigation - Answer✔actually lawsuit - and costly
What law requires all contracts for real property to be in writing to be enforceable? -
Answer✔Statute of Frauds
Recording Acts require - Answer✔that any claim, interest, or ownership in real estate be placed
in the public records in the county where the property is located.
What is duress? - Answer✔use of force
2
, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 9:46 AM A+
Valid contract - Answer✔3 of 6 - When a written agreement is legal and every item is
completely agreed to, it is said to be which of the following?
Void contract - Answer✔When an essential element is missing in an agreement and the courts
would not hold it as a contract, then the agreement would be:
Voidable contract - Answer✔When one party could change their mind and exit a contract, it is
said to be:
An unenforceable contract - Answer✔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?
Express contracts - Answer✔verbal or in writing that is clear and definite and would, therefore,
be considered express contracts.
implied contract. - Answer✔any contract that is not clear is usually an implied contract. The
agreement is indicated through the actions of the parties rather than the written word.
Bilateral contracts - Answer✔Both parties have rights and obligations
unilateral contract - Answer✔is a contract in which a party promises to perform without
expectation of performance by the other party.
1 of 6 - When all promises in a contract have been met, that contract is called what? -
Answer✔executed
2 of 6 - What is a contract called where there are still promises that need to be fulfilled? -
Answer✔executory
3
Texas Promulgated Contracts Exam
Questions And Answers |Latest 2025 |
Guaranteed Pass
In 1939, the legislator passed what law? - Answer✔Real Estate Dealers License Act (REDLA)
which meant all RE agents must obtain a license
Competent Parties Summary:(3) - Answer✔Must be 18 + years of age
Must be mentally competent
Cannot be temporary incompetent
The Texas Real Estate Commission regulates a licensee in which of the following situations? -
Answer✔when license sell house for client: which the licensee is acting in a third-party position
What is a legal agreement between parties to do (performance) or not to do (forbearance) a
certain act for consideration? - Answer✔a contract
Mutual Assent Summary (2) - Answer✔Agreement to all the terms
Agreement by all the parties
two types of consideration - Answer✔Valuable consideration is something of value
1
, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 9:46 AM A+
Good consideration is love and affection
Consideration Summary - Answer✔Something given in exchange for something else
Assignment - Answer✔One of the parties to a contract may choose to assign the contract to a
third individual.
Notation - Answer✔write up a new agreement with the existing parties
Mediation(non-binding) - Answer✔the third party mediator is simply a facilitator attempting to
keep both parties talking until they can reach a solution (preferred method)
no schooling needed
Arbitration - Answer✔the arbitrator listens to both sides of the situation and makes a decision.
His or her decision is binding and court action cannot be pursued.
require law degree/similar
Litigation - Answer✔actually lawsuit - and costly
What law requires all contracts for real property to be in writing to be enforceable? -
Answer✔Statute of Frauds
Recording Acts require - Answer✔that any claim, interest, or ownership in real estate be placed
in the public records in the county where the property is located.
What is duress? - Answer✔use of force
2
, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 9:46 AM A+
Valid contract - Answer✔3 of 6 - When a written agreement is legal and every item is
completely agreed to, it is said to be which of the following?
Void contract - Answer✔When an essential element is missing in an agreement and the courts
would not hold it as a contract, then the agreement would be:
Voidable contract - Answer✔When one party could change their mind and exit a contract, it is
said to be:
An unenforceable contract - Answer✔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?
Express contracts - Answer✔verbal or in writing that is clear and definite and would, therefore,
be considered express contracts.
implied contract. - Answer✔any contract that is not clear is usually an implied contract. The
agreement is indicated through the actions of the parties rather than the written word.
Bilateral contracts - Answer✔Both parties have rights and obligations
unilateral contract - Answer✔is a contract in which a party promises to perform without
expectation of performance by the other party.
1 of 6 - When all promises in a contract have been met, that contract is called what? -
Answer✔executed
2 of 6 - What is a contract called where there are still promises that need to be fulfilled? -
Answer✔executory
3
