Texas Promulgated Contract Forms Chapters 1-3 Exam Questions and Answers Rated A+

REDLA - Answer-Real Estate Dealer's License Act This act was administered by the Secretary of State until 1949 when the Texas Real Estate Commission (TREC) assumed the administrative responsibilities associated with it. In 1949, the REDLA was changed into the Texas Real Estate License Act (TRELA) T/F: All contracts must be in writing to be enforceable by law - Answer-FALSE BUT, a contract for the purchase of real estate must be in writing to be enforceable. Competent Party - Answer-- Must be 18 + years of age - Must be mentally competent - Cannot be temporarily incompetent To make a valid contract, there must be four elements, including Agreement, Competent Parties and Legal objective. Which one is missing? - Answer-Consideration What group administers the Texas Real Estate License Act? - Answer-Texas Real Estate Commission ______ is an agreement to all the terms by all the parties of a contract - Answer-Mutual Agreement A court's primary objective when interpreting a contract is to - Answer-ascertain and give effect to the intent of the parties as it is expressed in the contract. Acceptance must be - Answer-absolute and must be entered into freely and voluntarily. The contract cannot contain: - Answer-Misrepresentation - an error Fraud - intentional misrepresentation Duress - use of force Menace - threat of violence Undue Influence - use of power What is misrepresentation? - Answer-an error What is a court's primary objective when interpreting a contract? - Answer-To ascertain and give effect to the intent of the parties What is duress? - Answer-Use of force