PVL3702 LAW OF CONTRACT EXAM PREP
2026 VALIDITY REQUIREMENTS AND LEGAL
CONSEQUENCES COMPLETE SOLUTIONS
◉ Under the captive trae practices act DTPA, if a real estate
professional knowingly deceives a client,
Answer: Treble damages may be awarded to the injured party
◉ Manufactured housing in Texas can be considered real property if
Answer: The owner chooses to treat it as such
◉ An owner builds a deck and permanently attaches it to a house.
Answer: When the property is sold, it will be transferred with the
property with a conveyance deed
◉ One of the parties to a joint tenancy dies. The deceased tenant's
interest transfers to his heirs and not to the surviving joint tenants
Answer: FALSE
◉ Community property CANNOT
Answer: Be mortgaged or conveyed by one spouse without the
consent of the other
, ◉ A business organization MAY NOT
Answer: Own property as a tenancy by the entirety
◉ Indestructibility IS
Answer: A physical characteristic of land
◉ A seller promises to sell his house and transfer title to the buyer,
who promises to pay $125,000 for the house.
Answer: This is an example of bilateral contract
◉ The buyer and the seller have an executory contract for sale of a
property. The seller says the buyer can use the property as a
shooting range. The buyer checked zoning and discovered that the
special use is no longer lawful in that neighborhood.
Answer: In this case then, the contract is VOID
◉ Assignment transfers contract obligations to another party and
releases the first party obligations
Answer: Is FALSE
◉ Despite her best efforts, a licensee is unable to find a ready, willing
and able buyer for seller. This would be considered a breach of
contract between the broker and seller
2026 VALIDITY REQUIREMENTS AND LEGAL
CONSEQUENCES COMPLETE SOLUTIONS
◉ Under the captive trae practices act DTPA, if a real estate
professional knowingly deceives a client,
Answer: Treble damages may be awarded to the injured party
◉ Manufactured housing in Texas can be considered real property if
Answer: The owner chooses to treat it as such
◉ An owner builds a deck and permanently attaches it to a house.
Answer: When the property is sold, it will be transferred with the
property with a conveyance deed
◉ One of the parties to a joint tenancy dies. The deceased tenant's
interest transfers to his heirs and not to the surviving joint tenants
Answer: FALSE
◉ Community property CANNOT
Answer: Be mortgaged or conveyed by one spouse without the
consent of the other
, ◉ A business organization MAY NOT
Answer: Own property as a tenancy by the entirety
◉ Indestructibility IS
Answer: A physical characteristic of land
◉ A seller promises to sell his house and transfer title to the buyer,
who promises to pay $125,000 for the house.
Answer: This is an example of bilateral contract
◉ The buyer and the seller have an executory contract for sale of a
property. The seller says the buyer can use the property as a
shooting range. The buyer checked zoning and discovered that the
special use is no longer lawful in that neighborhood.
Answer: In this case then, the contract is VOID
◉ Assignment transfers contract obligations to another party and
releases the first party obligations
Answer: Is FALSE
◉ Despite her best efforts, a licensee is unable to find a ready, willing
and able buyer for seller. This would be considered a breach of
contract between the broker and seller
