Promulgated Contract Forms UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Valid - CORRECT ANSWER - A contract that is enforceable by the courts
Voidable - CORRECT ANSWER - A contract that has the essential features of a valid
contract
Unenforceable - CORRECT ANSWER - A contract that is not legally enforceable
Void - CORRECT ANSWER - A contract that doesn't meet the requirements of a valid
contract
Contract - CORRECT ANSWER - A legally binding and enforceable agreement to do or
not to do anything specific
Addenda - CORRECT ANSWER - Materials are added to and included in the initial
contract
Unilateral - CORRECT ANSWER - A seller is obligated to sell, but the buyer has no
obligation to buy
Bilateral - CORRECT ANSWER - A contract involves a promise exchanged for a promise
(sales contracts)
Executory - CORRECT ANSWER - The contract was signed, but the duties are not yet
complete (pending)
, Executed - CORRECT ANSWER - The contract duties are completed by both parties
(closed)
Novation - CORRECT ANSWER - A new contract or party transfers the obligations of the
first party, like an assumption with a release
Assignment - CORRECT ANSWER - A transfer of contract obligations to another party,
that doesn't release the first party's obligations
Termination - CORRECT ANSWER - A contract is fully executed (closed)
Statute of Limitations - CORRECT ANSWER - Governs how long contracting parties
have to file a law suit after the contract terminates
What is the difference between explaining contract forms and crossing the line into the
unauthorized practice of law? - CORRECT ANSWER - Give clients options but never tell
them what they should do
Who drafts and edits Texas real estate contract forms? - CORRECT ANSWER - Broker
Lawyer Committee
Who approves and promulgates Texas real estate contract forms? - CORRECT ANSWER -
Texas Real Estate Commission (TREC)
What is required for an offer to become a contract? - CORRECT ANSWER - Contract is
in writing, signed and initialed, total agreement and acceptance is communicated to the other
party or his or her agent
What is the purpose of the Real Estate License Act? - CORRECT ANSWER - Protect the
public
ACTUAL Exam Questions and CORRECT
Answers
Valid - CORRECT ANSWER - A contract that is enforceable by the courts
Voidable - CORRECT ANSWER - A contract that has the essential features of a valid
contract
Unenforceable - CORRECT ANSWER - A contract that is not legally enforceable
Void - CORRECT ANSWER - A contract that doesn't meet the requirements of a valid
contract
Contract - CORRECT ANSWER - A legally binding and enforceable agreement to do or
not to do anything specific
Addenda - CORRECT ANSWER - Materials are added to and included in the initial
contract
Unilateral - CORRECT ANSWER - A seller is obligated to sell, but the buyer has no
obligation to buy
Bilateral - CORRECT ANSWER - A contract involves a promise exchanged for a promise
(sales contracts)
Executory - CORRECT ANSWER - The contract was signed, but the duties are not yet
complete (pending)
, Executed - CORRECT ANSWER - The contract duties are completed by both parties
(closed)
Novation - CORRECT ANSWER - A new contract or party transfers the obligations of the
first party, like an assumption with a release
Assignment - CORRECT ANSWER - A transfer of contract obligations to another party,
that doesn't release the first party's obligations
Termination - CORRECT ANSWER - A contract is fully executed (closed)
Statute of Limitations - CORRECT ANSWER - Governs how long contracting parties
have to file a law suit after the contract terminates
What is the difference between explaining contract forms and crossing the line into the
unauthorized practice of law? - CORRECT ANSWER - Give clients options but never tell
them what they should do
Who drafts and edits Texas real estate contract forms? - CORRECT ANSWER - Broker
Lawyer Committee
Who approves and promulgates Texas real estate contract forms? - CORRECT ANSWER -
Texas Real Estate Commission (TREC)
What is required for an offer to become a contract? - CORRECT ANSWER - Contract is
in writing, signed and initialed, total agreement and acceptance is communicated to the other
party or his or her agent
What is the purpose of the Real Estate License Act? - CORRECT ANSWER - Protect the
public
