Texas Promulgated Contract Forms Exam Questions with Complete Solutions

A competent party is one that is: - Answer-At least 18 years of age Mentally competent Cannot be temporary incompetent The Texas Real Estate Commission regulates a licensee in which of the following situations? - Answer-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? - Answer-A contract All of the following are necessary to create a valid contract except which one? - Answer-Earnest money What law requires all contracts for real property to be in writing to be enforceable? - Answer-Statute of Frauds Which of the following would be an example of "good consideration"? - Answer-Love of a friend What is duress? - Answer-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. - Answer-Arbitration What is defined as agreement to all the terms by all the parties of the contract? - Answer-Mutual assent When all promises in a contract have been met, that contract is called what? - Answer-Executed What is a contract called which defers material action by either party into the future? - Answer-Executory When a written agreement is legal and every item is completely agreed to, it is said to be which of the following? - Answer-Valid When an essential element is missing in an agreement and the courts would not hold it as a contract, then the agreement would be: - Answer-Void