TEXAS PROMULGATED CONTRACTS CHAMPIONS STUDY 2026-
2027 | COMPLETE EXAM QUESTIONS WITH VERIFIED ANSWERS |
100% GUARANTEED PASS | GRADED A+
INTRODUCTION
Welcome to the Texas Promulgated Contracts - Champions Study 2026-2026
complete exam resource. This guide provides comprehensive questions with
verified answers covering all essential contract topics tested on the Texas real
estate licensing examination.
SECTION 1: CONTRACT FUNDAMENTALS
Question 1
The elements of a valid contract are: competent parties, consideration, legal
subject matter, in writing, and ______.
A) Default
B) Mutual consent
C) Property condition
D) Recording
VERIFIED ANSWER: B) Mutual consent
EXPLANATION: The elements of a valid contract in Texas are: competent
parties, consideration, legal subject matter, in writing (if required by the
Statute of Frauds), and mutual consent (meeting of the minds). Mutual
consent means both parties agree to the same terms and intend to enter
,into a binding agreement. This is sometimes referred to as "meeting of the
minds" or mutual assent. *
Question 2
A(n) ______ contract is defined as a contract that is binding on the parties, with
one or more of the parties having contractual duties that have not yet been
performed.
A) Executory
B) Executed
C) Bilateral
D) Void
VERIFIED ANSWER: A) Executory
EXPLANATION: An executory contract is one where one or more parties still
have duties to perform. The contract is binding, but not yet fully performed.
An executed contract is one where all parties have fully performed their
obligations. A bilateral contract involves promises exchanged by both
parties. A void contract has no legal effect. *
Question 3
In the business of real estate, ______ is defined as something given in exchange
for a promise.
A) Consideration
B) Mutual assent
C) A bribe
D) Legal subject matter
,VERIFIED ANSWER: A) Consideration
EXPLANATION: Consideration is something of value given in exchange for a
promise. In real estate contracts, consideration can be money (earnest
money, purchase price), property, or a promise to do or not do something.
Consideration is a required element of a valid contract and distinguishes a
contract from a gift. *
Question 4
The TREC-promulgated contract forms:
A) Are for optional use by real estate licensees
B) Are drafted by the Broker-Lawyer Committee
C) Are promulgated by the legislature
D) Are used in both commercial and residential transactions
VERIFIED ANSWER: B) Are drafted by the Broker-Lawyer Committee
EXPLANATION: TREC-promulgated contract forms are drafted by the
Broker-Lawyer Committee, which is appointed by the Texas Real Estate
Commission. TREC requires licensees to use these forms for certain
transactions and they are mandated by law for residential sales. They are
not optional for licensees in most residential transactions. They are not
used in commercial transactions. *
Question 5
An offer can be communicated by:
, A) Phone
B) Hand delivery
C) E-mail
D) All of the above
VERIFIED ANSWER: D) All of the above
EXPLANATION: An offer can be communicated by any means that clearly
conveys the offer to the offeree. This includes phone, hand delivery, e-mail,
fax, and other electronic means. The key is that the offer must be
communicated effectively and that the terms are clear and definite. The
Statute of Frauds requires certain contracts to be in writing. *
Question 6
What is the legal effect of the Statute of Frauds on real estate contracts?
A) All real estate contracts must be in writing to be enforceable
B) Only contracts for property over $100,000 must be in writing
C) Oral contracts are always enforceable
D) The Statute of Frauds only applies to commercial property
VERIFIED ANSWER: A) All real estate contracts must be in writing to be
enforceable
EXPLANATION: The Statute of Frauds requires that certain contracts,
including real estate contracts and leases for more than one year, be in
writing to be enforceable. This includes contracts for the sale of real
property, leases longer than one year, and contracts that cannot be
performed within one year. Oral real estate contracts are generally not
enforceable. *
2027 | COMPLETE EXAM QUESTIONS WITH VERIFIED ANSWERS |
100% GUARANTEED PASS | GRADED A+
INTRODUCTION
Welcome to the Texas Promulgated Contracts - Champions Study 2026-2026
complete exam resource. This guide provides comprehensive questions with
verified answers covering all essential contract topics tested on the Texas real
estate licensing examination.
SECTION 1: CONTRACT FUNDAMENTALS
Question 1
The elements of a valid contract are: competent parties, consideration, legal
subject matter, in writing, and ______.
A) Default
B) Mutual consent
C) Property condition
D) Recording
VERIFIED ANSWER: B) Mutual consent
EXPLANATION: The elements of a valid contract in Texas are: competent
parties, consideration, legal subject matter, in writing (if required by the
Statute of Frauds), and mutual consent (meeting of the minds). Mutual
consent means both parties agree to the same terms and intend to enter
,into a binding agreement. This is sometimes referred to as "meeting of the
minds" or mutual assent. *
Question 2
A(n) ______ contract is defined as a contract that is binding on the parties, with
one or more of the parties having contractual duties that have not yet been
performed.
A) Executory
B) Executed
C) Bilateral
D) Void
VERIFIED ANSWER: A) Executory
EXPLANATION: An executory contract is one where one or more parties still
have duties to perform. The contract is binding, but not yet fully performed.
An executed contract is one where all parties have fully performed their
obligations. A bilateral contract involves promises exchanged by both
parties. A void contract has no legal effect. *
Question 3
In the business of real estate, ______ is defined as something given in exchange
for a promise.
A) Consideration
B) Mutual assent
C) A bribe
D) Legal subject matter
,VERIFIED ANSWER: A) Consideration
EXPLANATION: Consideration is something of value given in exchange for a
promise. In real estate contracts, consideration can be money (earnest
money, purchase price), property, or a promise to do or not do something.
Consideration is a required element of a valid contract and distinguishes a
contract from a gift. *
Question 4
The TREC-promulgated contract forms:
A) Are for optional use by real estate licensees
B) Are drafted by the Broker-Lawyer Committee
C) Are promulgated by the legislature
D) Are used in both commercial and residential transactions
VERIFIED ANSWER: B) Are drafted by the Broker-Lawyer Committee
EXPLANATION: TREC-promulgated contract forms are drafted by the
Broker-Lawyer Committee, which is appointed by the Texas Real Estate
Commission. TREC requires licensees to use these forms for certain
transactions and they are mandated by law for residential sales. They are
not optional for licensees in most residential transactions. They are not
used in commercial transactions. *
Question 5
An offer can be communicated by:
, A) Phone
B) Hand delivery
C) E-mail
D) All of the above
VERIFIED ANSWER: D) All of the above
EXPLANATION: An offer can be communicated by any means that clearly
conveys the offer to the offeree. This includes phone, hand delivery, e-mail,
fax, and other electronic means. The key is that the offer must be
communicated effectively and that the terms are clear and definite. The
Statute of Frauds requires certain contracts to be in writing. *
Question 6
What is the legal effect of the Statute of Frauds on real estate contracts?
A) All real estate contracts must be in writing to be enforceable
B) Only contracts for property over $100,000 must be in writing
C) Oral contracts are always enforceable
D) The Statute of Frauds only applies to commercial property
VERIFIED ANSWER: A) All real estate contracts must be in writing to be
enforceable
EXPLANATION: The Statute of Frauds requires that certain contracts,
including real estate contracts and leases for more than one year, be in
writing to be enforceable. This includes contracts for the sale of real
property, leases longer than one year, and contracts that cannot be
performed within one year. Oral real estate contracts are generally not
enforceable. *
