Law of Contracts Exam Prep Questions
and Answers (Verified Answers)
1. All of the following acts on the part of a real estate broker would constitute
steering and thus be prohibited under the Fair Housing Act EXCEPT:
A) directing a prospective buyer of one minority group to work only with a
salesperson of the same minority group and to look at areas dominated bythat
minority group
B) directing a member of one minority group away from properties locatedin
areas dominated by other races
C) referring a member of one minority group to properties located only inareas
dominated by members of the same group
D) directing a minority buyer to an expensive subdivision Answer : D)
directing aminority buyer to an expensive subdivision
2. The One-to-Four Family Residential Contracts states:
A) only the buyer needs to sign the contract
B) licensees cannot give legal advice
C) no more than four people may live on the property
D) it may be used for condominiums Answer : B) licensees cannot give legal advice
3. Which listing is a non-exclusive agreement that lets the owner sell the
,property by themselves?
A) Open listing
B) Net listing
C) Exclusive Agency listing
D) Exclusive Right To Sell listing Answer : A) Open listing
4. In the deed, the clause which sets forth the extent of the title being
conveyed is:
A) hereditaments
B) the demising clause
C) the indenture clause
D) the habendum clause Answer : D) the habendum clause
5. When one of the parties of a contract may legally reject it, the contract issaid
to be:
A) voidable
B) void
C) unenforceable
D) valid Answer : A) voidable
6. Listing contracts obtained by a real estate salesman are considered to be:
A) the salesman's own property
, B) his personal property
C) the property of the employing broker
D) negotiable instrument Answer : C) the property of the employing broker
7. The seller and buyer enter into an oral contract and a written contract
concerning the same property. Which contracts will prevail in court?
A) written contract
B) oral contract
C) the contract offering the highest price for the property
D) the contract offering the lowest price for the property Answer : A) written
contract
8. A contract that has no legal effect because it does not contain all the
essential elements of a contract is:
A) voidable
B) unenforceable
C) void
D) canceled Answer : C) void
9. Which form is required for use in Texas for listing a property for sale?
A) The TREC promulgated listing agreement
B) The Texas Association of Realtors listing agreement
C) Any form may be used with the agreement of both parties
D) The form required by the broker listing the property Answer : B) The Texas
Associ-ation of Realtors listing agreement
and Answers (Verified Answers)
1. All of the following acts on the part of a real estate broker would constitute
steering and thus be prohibited under the Fair Housing Act EXCEPT:
A) directing a prospective buyer of one minority group to work only with a
salesperson of the same minority group and to look at areas dominated bythat
minority group
B) directing a member of one minority group away from properties locatedin
areas dominated by other races
C) referring a member of one minority group to properties located only inareas
dominated by members of the same group
D) directing a minority buyer to an expensive subdivision Answer : D)
directing aminority buyer to an expensive subdivision
2. The One-to-Four Family Residential Contracts states:
A) only the buyer needs to sign the contract
B) licensees cannot give legal advice
C) no more than four people may live on the property
D) it may be used for condominiums Answer : B) licensees cannot give legal advice
3. Which listing is a non-exclusive agreement that lets the owner sell the
,property by themselves?
A) Open listing
B) Net listing
C) Exclusive Agency listing
D) Exclusive Right To Sell listing Answer : A) Open listing
4. In the deed, the clause which sets forth the extent of the title being
conveyed is:
A) hereditaments
B) the demising clause
C) the indenture clause
D) the habendum clause Answer : D) the habendum clause
5. When one of the parties of a contract may legally reject it, the contract issaid
to be:
A) voidable
B) void
C) unenforceable
D) valid Answer : A) voidable
6. Listing contracts obtained by a real estate salesman are considered to be:
A) the salesman's own property
, B) his personal property
C) the property of the employing broker
D) negotiable instrument Answer : C) the property of the employing broker
7. The seller and buyer enter into an oral contract and a written contract
concerning the same property. Which contracts will prevail in court?
A) written contract
B) oral contract
C) the contract offering the highest price for the property
D) the contract offering the lowest price for the property Answer : A) written
contract
8. A contract that has no legal effect because it does not contain all the
essential elements of a contract is:
A) voidable
B) unenforceable
C) void
D) canceled Answer : C) void
9. Which form is required for use in Texas for listing a property for sale?
A) The TREC promulgated listing agreement
B) The Texas Association of Realtors listing agreement
C) Any form may be used with the agreement of both parties
D) The form required by the broker listing the property Answer : B) The Texas
Associ-ation of Realtors listing agreement
