Promulgated Contract Forms #351
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Essential elements of a contract include:
A. Competent parties
B. Offer and acceptance
C. Consideration
D. All of the above - CORRECT ANSWER - All of the above
The One-to-Four Family Contract includes all the following EXCEPT:
A. Street address and legal description
B. Down payment, loan amount, and sales price
C. Full and legal names of both parties
D. Type of loan the buyer is obtaining - CORRECT ANSWER - Type of loan the buyer is
obtaining
If a seller counters a buyer's offer, it is considered a rejection.
A. True
B. False - CORRECT ANSWER - True
It is considered illegal for a contract to include any discriminatory provisions.
A. True
B. False - CORRECT ANSWER - True
,The biggest majority of lawsuits come from the issue of:
A. Fixtures vs. personal items that convey with the property
B. Misunderstandings between brokers
C. Non-disclosure
D. Repair items - CORRECT ANSWER - Non-disclosure
A seller, age 30, enters into a contract with a buyer, age 17. The contract is:
A. Valid for both parties
B. Void for both parties
C. Voidable by the buyer
D. None of the above - CORRECT ANSWER - Voidable by the buyer
A bilateral contract is:
A. A promise in exchange for a promise
B. A promise made only by the agent
C. A promise made only be the seller
D. No promises - CORRECT ANSWER - A promise in exchange for a promise
A unilateral contract only binds one party to perform.
A. True
B. False - CORRECT ANSWER - True
The clause in a contract stating that "time is of the essence" would indicate:
,A. The contract must be finalized immediately.
B. The contract must include the time of day the contract was executed.
C. Strict performance of certain acts within the time stated in the contract.
D. Monetary penalties will be incurred if the provisions are not met by certain times. -
CORRECT ANSWER - Strict performance of certain acts within the time stated in the
contract.
If there is no time limit specified in an offer, then the time limit will expire:
A. 30 days
B. As stated by the broker.
C. As determined by the seller
D. Within a reasonable time - CORRECT ANSWER - Within a reasonable time
A contract is considered completely performed when all the terms of the contract have been
carried out.
A. True
B. False - CORRECT ANSWER - True
A rental lease is an example of an executory contract.
A. True
B. False - CORRECT ANSWER - True
A contract in which each party promises to perform an act in exchange for the other party's
promise to perform is a unilateral contract.
, A. True
B. False - CORRECT ANSWER - False
In Texas, if the buyer is in default, the seller can receive the earnest money as liquidated
damages.
A. True
B. False - CORRECT ANSWER - True
An addendum is text that is added to the original text as it got omitted from the draft by mistake
or by purpose.
A. True
B. False - CORRECT ANSWER - True
In Texas, real estate licensees have the authority to make up their own amendments or addenda to
contracts.
A. True
B. False - CORRECT ANSWER - False
In Texas, civil statute of limitation laws is anywhere from one to five years depending on the
severity of the claim.
A. True
B. False - CORRECT ANSWER - True
Contract termination doesn't necessarily have to involve the wrongdoing of one party.
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Essential elements of a contract include:
A. Competent parties
B. Offer and acceptance
C. Consideration
D. All of the above - CORRECT ANSWER - All of the above
The One-to-Four Family Contract includes all the following EXCEPT:
A. Street address and legal description
B. Down payment, loan amount, and sales price
C. Full and legal names of both parties
D. Type of loan the buyer is obtaining - CORRECT ANSWER - Type of loan the buyer is
obtaining
If a seller counters a buyer's offer, it is considered a rejection.
A. True
B. False - CORRECT ANSWER - True
It is considered illegal for a contract to include any discriminatory provisions.
A. True
B. False - CORRECT ANSWER - True
,The biggest majority of lawsuits come from the issue of:
A. Fixtures vs. personal items that convey with the property
B. Misunderstandings between brokers
C. Non-disclosure
D. Repair items - CORRECT ANSWER - Non-disclosure
A seller, age 30, enters into a contract with a buyer, age 17. The contract is:
A. Valid for both parties
B. Void for both parties
C. Voidable by the buyer
D. None of the above - CORRECT ANSWER - Voidable by the buyer
A bilateral contract is:
A. A promise in exchange for a promise
B. A promise made only by the agent
C. A promise made only be the seller
D. No promises - CORRECT ANSWER - A promise in exchange for a promise
A unilateral contract only binds one party to perform.
A. True
B. False - CORRECT ANSWER - True
The clause in a contract stating that "time is of the essence" would indicate:
,A. The contract must be finalized immediately.
B. The contract must include the time of day the contract was executed.
C. Strict performance of certain acts within the time stated in the contract.
D. Monetary penalties will be incurred if the provisions are not met by certain times. -
CORRECT ANSWER - Strict performance of certain acts within the time stated in the
contract.
If there is no time limit specified in an offer, then the time limit will expire:
A. 30 days
B. As stated by the broker.
C. As determined by the seller
D. Within a reasonable time - CORRECT ANSWER - Within a reasonable time
A contract is considered completely performed when all the terms of the contract have been
carried out.
A. True
B. False - CORRECT ANSWER - True
A rental lease is an example of an executory contract.
A. True
B. False - CORRECT ANSWER - True
A contract in which each party promises to perform an act in exchange for the other party's
promise to perform is a unilateral contract.
, A. True
B. False - CORRECT ANSWER - False
In Texas, if the buyer is in default, the seller can receive the earnest money as liquidated
damages.
A. True
B. False - CORRECT ANSWER - True
An addendum is text that is added to the original text as it got omitted from the draft by mistake
or by purpose.
A. True
B. False - CORRECT ANSWER - True
In Texas, real estate licensees have the authority to make up their own amendments or addenda to
contracts.
A. True
B. False - CORRECT ANSWER - False
In Texas, civil statute of limitation laws is anywhere from one to five years depending on the
severity of the claim.
A. True
B. False - CORRECT ANSWER - True
Contract termination doesn't necessarily have to involve the wrongdoing of one party.
