LAW OF CONTRACTS 2026 ACTUAL
EXAM AND DETAILED CORRECT
SOLUTIONS GRADED A+ LATEST !!
A buyer defaults on a contract, and the seller chooses to receive the earnest money.
This is an example of:
a) A suit for specific performance
b) Money damages
c) Liquidated damages
d) Mutual rescission
Liquidated Damages
In a residential lease with a "right of first refusal" provision:
a) The price is set when the lease agreement is negotiated
b) The tenant has promised to buy the property
c) The TREC promulgated form must be used
d) The tenant has the right to match or better any offer the landlord receives to
prevent the property from being sold to someone else
d) The tenant has the right to match or better any offer the landlord receives to
prevent the property from being sold to someone else
Bill is purchasing a property from Sally. All contingencies have been met, and the
parties are ready to close. One day before closing, Sally announces that she has
changed her mind and is going to keep the property. Bill is determined to complete
the purchase and acquire the property. The only default remedy in the contract that
could result in Bill acquiring the property is__
,a) Monetary damages
b) Liquidated damages
c) Punitive damages
d) Specific performance
d) Specific performance
Elmer Fleckenfleck, an agent with After Hours Realty, was preparing a contract.
The seller told Elmer that he wanted to stay in the property at least a week after
closing. Elmer said that would be no problem and entered the following text to
Paragraph 11, "Seller and Buyer agree that Seller will remain in the Property for 7
days after closing and funding." In this case, Elmer has:
a) Properly represented the interests of both parties
b) Completed the contract according to established regulations and procedures
c) Engaged in the unlawful practice of law
d) Violated numerous provisions of RESPA
c) Engaged in the unlawful practice of law
Texas Veteran's Land Board's Housing Assistance Program loans can be:
a) Used only be disabled Texas veterans
b) Used to purchase either commercial or residential property
c) Used only for VA-guaranteed loans
d) Used for FHA, VA, or conventional loans
d) Used with FHA, VA, or conventional loans
The four economic characteristics of land are scarcity, fixity, situs, and ___.
a) Modification
, b) Indestructibility
c) Non-homogeneity
d) Immobility
a) Modification
Joe is an agent at Tried and True Realty. He gets $150, 000 offer on a property that
is listed for $199,500. In a recent phone conversation, the seller told Hoe he would
accept no less than $185,000 for the property. Knowing the seller's "bottom line,"
what should Joe do with the offer?
a) Joe should notify the buyer that he will not present the offer because it is too
low.
b) Joe should hold on to the offer for several days just to see if a better one comes
in.
c) Joe should call the buyer and insist that a more satisfactory offer be presented.
d) Joe should present the offer to the seller.
d) Joe should present the offer to the seller.
An abstract of title is a(n) ___.
a) Title commitment
b) Attorney's opinion of title
c) Complete written history of title
d) Summary of the current conditions of the title
c) Complete written history of title
EXAM AND DETAILED CORRECT
SOLUTIONS GRADED A+ LATEST !!
A buyer defaults on a contract, and the seller chooses to receive the earnest money.
This is an example of:
a) A suit for specific performance
b) Money damages
c) Liquidated damages
d) Mutual rescission
Liquidated Damages
In a residential lease with a "right of first refusal" provision:
a) The price is set when the lease agreement is negotiated
b) The tenant has promised to buy the property
c) The TREC promulgated form must be used
d) The tenant has the right to match or better any offer the landlord receives to
prevent the property from being sold to someone else
d) The tenant has the right to match or better any offer the landlord receives to
prevent the property from being sold to someone else
Bill is purchasing a property from Sally. All contingencies have been met, and the
parties are ready to close. One day before closing, Sally announces that she has
changed her mind and is going to keep the property. Bill is determined to complete
the purchase and acquire the property. The only default remedy in the contract that
could result in Bill acquiring the property is__
,a) Monetary damages
b) Liquidated damages
c) Punitive damages
d) Specific performance
d) Specific performance
Elmer Fleckenfleck, an agent with After Hours Realty, was preparing a contract.
The seller told Elmer that he wanted to stay in the property at least a week after
closing. Elmer said that would be no problem and entered the following text to
Paragraph 11, "Seller and Buyer agree that Seller will remain in the Property for 7
days after closing and funding." In this case, Elmer has:
a) Properly represented the interests of both parties
b) Completed the contract according to established regulations and procedures
c) Engaged in the unlawful practice of law
d) Violated numerous provisions of RESPA
c) Engaged in the unlawful practice of law
Texas Veteran's Land Board's Housing Assistance Program loans can be:
a) Used only be disabled Texas veterans
b) Used to purchase either commercial or residential property
c) Used only for VA-guaranteed loans
d) Used for FHA, VA, or conventional loans
d) Used with FHA, VA, or conventional loans
The four economic characteristics of land are scarcity, fixity, situs, and ___.
a) Modification
, b) Indestructibility
c) Non-homogeneity
d) Immobility
a) Modification
Joe is an agent at Tried and True Realty. He gets $150, 000 offer on a property that
is listed for $199,500. In a recent phone conversation, the seller told Hoe he would
accept no less than $185,000 for the property. Knowing the seller's "bottom line,"
what should Joe do with the offer?
a) Joe should notify the buyer that he will not present the offer because it is too
low.
b) Joe should hold on to the offer for several days just to see if a better one comes
in.
c) Joe should call the buyer and insist that a more satisfactory offer be presented.
d) Joe should present the offer to the seller.
d) Joe should present the offer to the seller.
An abstract of title is a(n) ___.
a) Title commitment
b) Attorney's opinion of title
c) Complete written history of title
d) Summary of the current conditions of the title
c) Complete written history of title
