Texas Promulgated Contracts
Exam Questions and Answers
100% Pass
In 1939, the legislator passed what law? - CORRECT ANSWER:-Real Estate
Dealers License Act (REDLA) which meant all RE agents must obtain a license
Competent Parties Summary:(3) - CORRECT 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? - CORRECT 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? - CORRECT ANSWER:-a contract
Mutual Assent Summary (2) - CORRECT ANSWER:-Agreement to all the terms
,Agreement by all the parties
two types of consideration - CORRECT ANSWER:-Valuable consideration is
something of value
Good consideration is love and affection
Consideration Summary - CORRECT ANSWER:-Something given in exchange
for something else
Assignment - CORRECT ANSWER:-One of the parties to a contract may choose
to assign the contract to a third individual.
Notation - CORRECT ANSWER:-write up a new agreement with the existing
parties
Mediation(non-binding) - CORRECT 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 - CORRECT 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 - CORRECT ANSWER:-actually lawsuit - and costly
What law requires all contracts for real property to be in writing to be enforceable?
- CORRECT ANSWER:-Statute of Frauds
Recording Acts require - CORRECT 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? - CORRECT ANSWER:-use of force
Valid contract - CORRECT 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 - CORRECT 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 - CORRECT ANSWER:-When one party could change their
mind and exit a contract, it is said to be:
Exam Questions and Answers
100% Pass
In 1939, the legislator passed what law? - CORRECT ANSWER:-Real Estate
Dealers License Act (REDLA) which meant all RE agents must obtain a license
Competent Parties Summary:(3) - CORRECT 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? - CORRECT 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? - CORRECT ANSWER:-a contract
Mutual Assent Summary (2) - CORRECT ANSWER:-Agreement to all the terms
,Agreement by all the parties
two types of consideration - CORRECT ANSWER:-Valuable consideration is
something of value
Good consideration is love and affection
Consideration Summary - CORRECT ANSWER:-Something given in exchange
for something else
Assignment - CORRECT ANSWER:-One of the parties to a contract may choose
to assign the contract to a third individual.
Notation - CORRECT ANSWER:-write up a new agreement with the existing
parties
Mediation(non-binding) - CORRECT 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 - CORRECT 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 - CORRECT ANSWER:-actually lawsuit - and costly
What law requires all contracts for real property to be in writing to be enforceable?
- CORRECT ANSWER:-Statute of Frauds
Recording Acts require - CORRECT 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? - CORRECT ANSWER:-use of force
Valid contract - CORRECT 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 - CORRECT 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 - CORRECT ANSWER:-When one party could change their
mind and exit a contract, it is said to be:
