Texas Promulgated Contract Forms Exam Questions with Complete Solutions

Lesson 1 - Answer-Contract Law Overview Practice of Law - Answer-involves giving legal advice to clients, drafting legal documents for clients, and representing clients in legal negotiations and court proceedings such as lawsuits. The practice of law is applied to the professional services of an attorney at law, barrister, solicitor, or civil law notary. However, there is a substantial amount of overlap between the practice of law and various other professions where clients are represented by agents. These professions include real estate, banking, accounting, and insurance. The Texas Real Estate License Act, 22 TAC 537.11, contains the following: - Answer-A license holder may not: (1) practice law; (2) offer, give or attempt to give legal advice, directly or indirectly; (3) give advice or opinions as to the legal effect of any contracts or other such instruments which may affect the title to real estate; (4) give opinions concerning the status or validity of title to real estate; or (5) attempt to prevent or in any manner whatsoever discourage any principal to a real estate transaction from employing a lawyer. This section does not limit a license holder's fiduciary obligation to disclose to the license holder's principals all pertinent facts which are within the knowledge of the license holder, including such facts which might affect the status of or title to real estate. A couple of other cautions regarding attorneys. Real estate agents can never furnish an attorney to their client. Clients must choose and pay for their own attorney Legal Hotline - Answer- It is your link to an attorney who can provide information about real estate law and related matters. All Texas REALTORS® can call the hotline. The designated REALTOR® for your office will be notified by e-mail when you call. Contract - Answer-A contract is a legally binding and enforceable agreement to do or not to do a specific thing. Expressed contracts are either verbal or written, while implied contracts are created by actions, not in writing. Essential Elements of a contract - Answer-• Competent parties • Mutual agreement • Lawful objective • Consideration • In writing and signed