Texas Promulgated Forms| Questions With 100% Correct Answers | Verified

When a contract contains all of the essential elements that make it legally sufficient or enforceable and is binding in a court of law, it is - The answer is valid. A valid contract meets all of the required essential elements (i.e., offer and acceptance, consideration, legal purpose, consent, and legal capacity). A valid legal contract must have - legally competent parties. The parties must be of legal age and have enough mental capacity to understand the nature or consequences of their actions in the contract. A contract is said to be bilateral if - all parties to the contract exchange binding promises. Bilateral mean that each of the parties agrees to give something (i.e., buyer and seller, seller and listing broker, landlord and tenant). A contract can be discharged or terminated - by impossibility of performance. Impossibility of performance means that an act required by the contract cannot be legally accomplished. For example, suppose a contract stipulates that a buyer must be able to park his RV in the driveway of the property. After research, it is determined that deed restrictions prohibit that action. The statute of limitations for a written contract for the sale of real estate in Texas is - four years. In Texas, the statute of limitations for filing a legal suit on a written contract is four years. Remember that the statute of frauds requires agreements affecting title to or interest in real estate in Texas to be in writing to be enforceable, so the statute of limitations on a contract for the sale of real estate is four years. Which of these promulgated forms does NOT include "time is of the essence"? - Loan Assumption Addendum. The six promulgated contract forms and four addenda include "time is of the essence": Addendum for Sale of Other Property by Buyer, Addendum for Back-Up Contract, Third Party Financing Addendum, and Short Sale Addendum. One party cancelling or terminating a contract as though it had never been made is - rescission. Rescission returns the parties to their original positions before the contract, so any monies exchanged must be returned. Rescission is normally a contractual remedy for a breach.