PROMULGATED CONTRACTS Compiled
quizzes | 250 Questions with 100% Correct
Answers | Updated 2023 | Guaranteed A+
5 essential elements of a valid contract: - ✔✔1.Mutual assent (100% agreement)
2.Legally competent parties (18, sane, and sober)
3.Consideration (an exchange of something of value)
4.Lawful objective (the purpose of the contract must be legal)
5.In writing (a written and signed offer and acceptance)
If two people have a contract for one to sell illegal drugs to the other, the contract would be: - ✔✔Void
A contract that cannot be enforced by the courts is _____. - ✔✔unenforceable
Executory Contract: - ✔✔A contract that is not completely executed or performed
Executed Contract: - ✔✔A contract in which all terms have been fulfilled by all parties
A contract that is "pending" is __________________. - ✔✔executory
,The difference between an executory contract and an executed contract is that the executed contract is
_____. - ✔✔closed
The best way for any contract to terminate is to become _________________. - ✔✔executed
According to Texas state law, a contract for deed and a lease with an option to buy are considered
___________. - ✔✔executory contracts
Bilateral Contract: - ✔✔A contract in which one party must promise to do something for another
party and that party must promise to do something for the first party
Unilateral Contract: - ✔✔A contract made between two or more parties in which only one of
those parties makes a promise or otherwise accepts an obligation
An option to buy contract is a(n)_________________. - ✔✔Unilateral Contract
Which of the following is a bilateral contract? - ✔✔leases
If a contract says "time is of the essence," that means that it is due: - ✔✔as soon as possible
,By whom should the language "time of the essence" be added? - ✔✔an attorney
Addenda: - ✔✔Materials added to and included in the initial contract that provide more information
on the transaction
Amendment: - ✔✔Items that are attached to the original document and should never be changed after
the document has been signed and accepted
When filling out the nine checkable box options on the Amendment to Contract form, more than one
box can be checked. - ✔✔TRUE
In which situation would an amendment go into effect? - ✔✔the parties sign to amendment
TREC promulgated addenda are added to the contract AFTER it has been signed. - ✔✔FALSE
(Explanation: Addenda are added to the contract BEFORE the contract has been signed.
Amendments are added afterwards.)
Performance: - ✔✔The responsibility of all the parties to carry out their part of a contract
, Quitclaim Deed: - ✔✔Transfers ownership of whatever the grantor owns but make no guarantee
of ownership and no promise to defend
Novation: - ✔✔The substitution of a new contract for an existing contract, relieves the original party
of liability
Obligations often times must be completed within a certain number of days of _____. - ✔✔the effective
date
If one of the parties defaults and the non-defaulting party accepts the earnest money as damages, they
may also: - ✔✔Do nothing more, as the contract is terminated.
To transfer contract obligations without necessarily relieving the original party from obligations, you
need a(n) __________. - ✔✔assignment
Statute of Limitation: - ✔✔A law establishing a time limit for civil suits
The Doctrine of Laches is the same thing as the Statutes of Limitations. - ✔✔FALSE
quizzes | 250 Questions with 100% Correct
Answers | Updated 2023 | Guaranteed A+
5 essential elements of a valid contract: - ✔✔1.Mutual assent (100% agreement)
2.Legally competent parties (18, sane, and sober)
3.Consideration (an exchange of something of value)
4.Lawful objective (the purpose of the contract must be legal)
5.In writing (a written and signed offer and acceptance)
If two people have a contract for one to sell illegal drugs to the other, the contract would be: - ✔✔Void
A contract that cannot be enforced by the courts is _____. - ✔✔unenforceable
Executory Contract: - ✔✔A contract that is not completely executed or performed
Executed Contract: - ✔✔A contract in which all terms have been fulfilled by all parties
A contract that is "pending" is __________________. - ✔✔executory
,The difference between an executory contract and an executed contract is that the executed contract is
_____. - ✔✔closed
The best way for any contract to terminate is to become _________________. - ✔✔executed
According to Texas state law, a contract for deed and a lease with an option to buy are considered
___________. - ✔✔executory contracts
Bilateral Contract: - ✔✔A contract in which one party must promise to do something for another
party and that party must promise to do something for the first party
Unilateral Contract: - ✔✔A contract made between two or more parties in which only one of
those parties makes a promise or otherwise accepts an obligation
An option to buy contract is a(n)_________________. - ✔✔Unilateral Contract
Which of the following is a bilateral contract? - ✔✔leases
If a contract says "time is of the essence," that means that it is due: - ✔✔as soon as possible
,By whom should the language "time of the essence" be added? - ✔✔an attorney
Addenda: - ✔✔Materials added to and included in the initial contract that provide more information
on the transaction
Amendment: - ✔✔Items that are attached to the original document and should never be changed after
the document has been signed and accepted
When filling out the nine checkable box options on the Amendment to Contract form, more than one
box can be checked. - ✔✔TRUE
In which situation would an amendment go into effect? - ✔✔the parties sign to amendment
TREC promulgated addenda are added to the contract AFTER it has been signed. - ✔✔FALSE
(Explanation: Addenda are added to the contract BEFORE the contract has been signed.
Amendments are added afterwards.)
Performance: - ✔✔The responsibility of all the parties to carry out their part of a contract
, Quitclaim Deed: - ✔✔Transfers ownership of whatever the grantor owns but make no guarantee
of ownership and no promise to defend
Novation: - ✔✔The substitution of a new contract for an existing contract, relieves the original party
of liability
Obligations often times must be completed within a certain number of days of _____. - ✔✔the effective
date
If one of the parties defaults and the non-defaulting party accepts the earnest money as damages, they
may also: - ✔✔Do nothing more, as the contract is terminated.
To transfer contract obligations without necessarily relieving the original party from obligations, you
need a(n) __________. - ✔✔assignment
Statute of Limitation: - ✔✔A law establishing a time limit for civil suits
The Doctrine of Laches is the same thing as the Statutes of Limitations. - ✔✔FALSE
