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Champions Promulgated Forms Questions and
Correct Answers/ Latest Update / Already Graded
mutual consent
Ans: meeting of the minds
consideration
Ans: something given in exchange for a promise
option
Ans: an agreement between a buyer and seller giving the buyer the right to
purchase a property at a present price for a given period of time
void contract
Ans: invalid from the beginning and has no effect on the parties. contract to
perform illegal act is a void contract
voidable contract
Ans: cannot be enforced against one or more of the parties. most contracts
entered into with minors are voidable at the option of the minor.
valid and enforceable contract
Ans: competent parties, mutual consent (offer and acceptance), legal purpose, in
writing (when required by law), consideration
executory contract
© 2025/ 2026 | ® All rights reserved
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Ans: defined as a contract that is binding on the parties, with one or more of
the parties having contractual duties that have not yet been performed (from
effective date to closing, the contract is executory)
"time is of the essence"
Ans: time for performance is literally interpreted, and must be performed by
the day stipulated
amendments
Ans: ___________ to the original contract may be needed. common
amendments: changes to closing date, sales price, down payment and or amount
financed, repairs that the seller agrees to perform, removal or waiver of
contingencies
addenda
Ans: _______ to a contract is an attachment that adds or further describes the
rights and duties of a party. (ex. Financing _______ to obtain acceptable
financing) if _____addendum contradicts the main body of a contract, the
provision in the ________ prevails
assignment
Ans: _____ of a contract transfers all the rights related to the contract to
another party known as the assignee. assignee assumes primary liability for
performance under the contracts, and the assignor, unless released, remains
secondarily liable
novation
Ans: new contract is substituted for an existing one
statute of limitations
© 2025/ 2026 | ® All rights reserved
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Ans: limitation of time in which an individual may file suit in court for damages
because a party breached a contract. 2 years for oral agreement, 4 years for
written
reasons for termination of a contract
Ans: mutual agreement, partial performance, substantial performance,
impossibility, operation of law, breach of contract
Enter into a contract with a person who has been judged to be incompetent that
contract is considered:
Ans: void
Enter into a contract with a person who is a minor, that contract is considered:
Ans: voidable
Texas Real Estate License Act created in
Ans: 1939
Texas Real Estate Commission created in:
Ans: 1949
TREC compromised of (and appointed and approved by):
Ans: 9 members. 6 members are brokers, 3 are individuals not regulated by
commission and who have no financial interest in real estate (appointed by the
governor and approved by the state senate)
Primary duty of Commission
© 2025/ 2026 | ® All rights reserved
Champions Promulgated Forms Questions and
Correct Answers/ Latest Update / Already Graded
mutual consent
Ans: meeting of the minds
consideration
Ans: something given in exchange for a promise
option
Ans: an agreement between a buyer and seller giving the buyer the right to
purchase a property at a present price for a given period of time
void contract
Ans: invalid from the beginning and has no effect on the parties. contract to
perform illegal act is a void contract
voidable contract
Ans: cannot be enforced against one or more of the parties. most contracts
entered into with minors are voidable at the option of the minor.
valid and enforceable contract
Ans: competent parties, mutual consent (offer and acceptance), legal purpose, in
writing (when required by law), consideration
executory contract
© 2025/ 2026 | ® All rights reserved
, 2 | Page
Ans: defined as a contract that is binding on the parties, with one or more of
the parties having contractual duties that have not yet been performed (from
effective date to closing, the contract is executory)
"time is of the essence"
Ans: time for performance is literally interpreted, and must be performed by
the day stipulated
amendments
Ans: ___________ to the original contract may be needed. common
amendments: changes to closing date, sales price, down payment and or amount
financed, repairs that the seller agrees to perform, removal or waiver of
contingencies
addenda
Ans: _______ to a contract is an attachment that adds or further describes the
rights and duties of a party. (ex. Financing _______ to obtain acceptable
financing) if _____addendum contradicts the main body of a contract, the
provision in the ________ prevails
assignment
Ans: _____ of a contract transfers all the rights related to the contract to
another party known as the assignee. assignee assumes primary liability for
performance under the contracts, and the assignor, unless released, remains
secondarily liable
novation
Ans: new contract is substituted for an existing one
statute of limitations
© 2025/ 2026 | ® All rights reserved
, 3 | Page
Ans: limitation of time in which an individual may file suit in court for damages
because a party breached a contract. 2 years for oral agreement, 4 years for
written
reasons for termination of a contract
Ans: mutual agreement, partial performance, substantial performance,
impossibility, operation of law, breach of contract
Enter into a contract with a person who has been judged to be incompetent that
contract is considered:
Ans: void
Enter into a contract with a person who is a minor, that contract is considered:
Ans: voidable
Texas Real Estate License Act created in
Ans: 1939
Texas Real Estate Commission created in:
Ans: 1949
TREC compromised of (and appointed and approved by):
Ans: 9 members. 6 members are brokers, 3 are individuals not regulated by
commission and who have no financial interest in real estate (appointed by the
governor and approved by the state senate)
Primary duty of Commission
© 2025/ 2026 | ® All rights reserved
