Texas Promulgated Contract Forms
UPDATED Exam Questions and
CORRECT Answers
A competent party is one that is: - CORRECT 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? -
CORRECT 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? - CORRECT ANSWER - A contract
All of the following are necessary to create a valid contract except which one? - CORRECT
ANSWER - Earnest money
What law requires all contracts for real property to be in writing to be enforceable? - CORRECT
ANSWER - Statute of Frauds
Which of the following would be an example of "good consideration"? - CORRECT
ANSWER - Love of a friend
What is duress? - CORRECT 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. - CORRECT ANSWER -
Arbitration
,What is defined as agreement to all the terms by all the parties of the contract? - CORRECT
ANSWER - Mutual assent
When all promises in a contract have been met, that contract is called what? - CORRECT
ANSWER - Executed
What is a contract called which defers material action by either party into the future? -
CORRECT ANSWER - Executory
When a written agreement is legal and every item is completely agreed to, it is said to be which
of the following? - CORRECT 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: - CORRECT ANSWER - Void
When one party could change their mind and exit a contract, it is said to be: - CORRECT
ANSWER - Voidable
When one party may be in default but because of the nature of the agreement, the damaged party
would not have the ability to sue the other party in court, this is what type of contract? -
CORRECT ANSWER - Unenforceable
When a change needs to be made to the TREC ONE TO FOUR FAMILY RESIDENTIAL
CONTRACT (RESALE) TREC 20-14, what is the best way to handle it? - CORRECT
ANSWER - Changes should be made using the "Amendment to Contract" addendum.
For which of the following reasons could a contract need to be changed? - CORRECT
ANSWER - For repairs
For financing
For termination of the option
, What law requires any amendment or addenda used must be in writing and signed by both parties
to be enforceable? - CORRECT ANSWER - Statute of Frauds
Which of the following is the correct definition of the "Four Corners Doctrine"? - CORRECT
ANSWER - The interpretation of any disputed clause in a contract will be influenced by
the document as a whole.
What rule in contract cases prevents a party to a written contract from presenting oral evidence
that contradicts or adds to the written terms of the contract that appears to be whole? -
CORRECT ANSWER - Parol Evidence Rule
How long is the Statute of Limitations for a written contract in Texas? - CORRECT
ANSWER - Four years
How long is the Statute of Limitations for an oral contract in Texas? - CORRECT
ANSWER - Four years
Which of the following items would need to be disclosed by a seller prior to selling his or her
property? - CORRECT ANSWER - Asbestos
Lead-based paint
Mold
What type of contract dispute results in going to court and usually involves attorneys and
research? - CORRECT ANSWER - Litigation
How difficult was the real estate license to acquire prior to the 1930's? - CORRECT
ANSWER - There was no test.
The Texas Real Estate License Act was formerly known as - CORRECT ANSWER - the
Real Estate Dealer's License Act.
UPDATED Exam Questions and
CORRECT Answers
A competent party is one that is: - CORRECT 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? -
CORRECT 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? - CORRECT ANSWER - A contract
All of the following are necessary to create a valid contract except which one? - CORRECT
ANSWER - Earnest money
What law requires all contracts for real property to be in writing to be enforceable? - CORRECT
ANSWER - Statute of Frauds
Which of the following would be an example of "good consideration"? - CORRECT
ANSWER - Love of a friend
What is duress? - CORRECT 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. - CORRECT ANSWER -
Arbitration
,What is defined as agreement to all the terms by all the parties of the contract? - CORRECT
ANSWER - Mutual assent
When all promises in a contract have been met, that contract is called what? - CORRECT
ANSWER - Executed
What is a contract called which defers material action by either party into the future? -
CORRECT ANSWER - Executory
When a written agreement is legal and every item is completely agreed to, it is said to be which
of the following? - CORRECT 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: - CORRECT ANSWER - Void
When one party could change their mind and exit a contract, it is said to be: - CORRECT
ANSWER - Voidable
When one party may be in default but because of the nature of the agreement, the damaged party
would not have the ability to sue the other party in court, this is what type of contract? -
CORRECT ANSWER - Unenforceable
When a change needs to be made to the TREC ONE TO FOUR FAMILY RESIDENTIAL
CONTRACT (RESALE) TREC 20-14, what is the best way to handle it? - CORRECT
ANSWER - Changes should be made using the "Amendment to Contract" addendum.
For which of the following reasons could a contract need to be changed? - CORRECT
ANSWER - For repairs
For financing
For termination of the option
, What law requires any amendment or addenda used must be in writing and signed by both parties
to be enforceable? - CORRECT ANSWER - Statute of Frauds
Which of the following is the correct definition of the "Four Corners Doctrine"? - CORRECT
ANSWER - The interpretation of any disputed clause in a contract will be influenced by
the document as a whole.
What rule in contract cases prevents a party to a written contract from presenting oral evidence
that contradicts or adds to the written terms of the contract that appears to be whole? -
CORRECT ANSWER - Parol Evidence Rule
How long is the Statute of Limitations for a written contract in Texas? - CORRECT
ANSWER - Four years
How long is the Statute of Limitations for an oral contract in Texas? - CORRECT
ANSWER - Four years
Which of the following items would need to be disclosed by a seller prior to selling his or her
property? - CORRECT ANSWER - Asbestos
Lead-based paint
Mold
What type of contract dispute results in going to court and usually involves attorneys and
research? - CORRECT ANSWER - Litigation
How difficult was the real estate license to acquire prior to the 1930's? - CORRECT
ANSWER - There was no test.
The Texas Real Estate License Act was formerly known as - CORRECT ANSWER - the
Real Estate Dealer's License Act.
