Texas Promulgated Contract Forms Exam, All Questions with Correct Answers |100%

Texas Promulgated Contract Forms Exam, All Questions with Correct Answers |100% A competent party is one that is: a. At least 18 years of age b. Mentally competent c. Cannot be temporary incompetent d. All of the above ((Correct Ans:-d. All of the above The Texas Real Estate Commission regulates a licensee in which of the following situations? a. When the licensee is purchasing a house b. When the licensee is purchasing a commercial building c. When the licensee is selling a house for a client d. At all times ((Correct Ans:-c. When the licensee is selling a house for a client What is a legal agreement between parties to do (performance) or not to do (forbearance) a certain act for consideration? a. A contract b. An offer c. Unilateral agreement d. Contingency agreement ((Correct Ans:-a. A contract All of the following are necessary to create a valid contract except which one? a. Agreement b. Earnest money c. Competent parties d. Legal objective ((Correct Ans:-b. Earnest money What law requires all contracts for real property to be in writing to be enforceable? a. Statute of Frauds b. Contract law c. Real Estate License Act d. Real Property Enforcement Act ((Correct Ans:-a. Statute of Frauds Which of the following would be an example of "good consideration"? a. Cash b. Trade a house for a house c. Love of a friend d. A boat ((Correct Ans:-c. Love of a friend What is duress? a. Undue influence b. Threat of violence c. Use of force d. Intentional misrepresentation ((Correct Ans:-c. Use of force What is it called when a person listens to both sides of the situation and makes a decision. His or her decision is binding and court action cannot be pursued. a. Mediation b. Arbitration c. Litigation d. Discrimination ((Correct Ans:-b. Arbitration What is defined as agreement to all the terms by all the parties of the contract? a. Mutual assent b. Consideration c. Rule 1 - Statute of Frauds d. Counter offer ((Correct Ans:-a. Mutual assent When all promises in a contract have been met, that contract is called what? a. Executory b. Voidable c. Executed d. Unenforceable ((Correct Ans:-c. Executed What is a contract called which defers material action by either party into the future? a. Executory b. Voidable c. Executed d. Unenforceable ((Correct Ans:-a. Executory When a written agreement is legal and every item is completely agreed to, it is said to be which of the following? a. Valid b. Void c. Unenforceable d. Voidable ((Correct Ans:-a. Valid