Texas Promulgated Contracts Questions with Answers (100% Correct Answers)

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Texas Promulgated Contracts Questions with Answers
(100% Correct Answers)


addenda

Ans: additions to a completed contract that specify supplementary information to the
contract


amendment

Ans: change or modification to an already agreed-upon contract


bilateral contract

Ans: a contract wherein both parties are obligated to perform in an exchange of
promises


buyer rebate

Ans: anything during a transaction that causes money to go back to the buyer, either at
or after closing, without the knowledge of the lender


casualty loss

Ans: a sudden, unexpected event like a fire, flood, storm, earthquake that causes
damage to a property


consideration




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Ans: something of value exchanged by the parties as evidence of agreement to the
terms of a contract


contract

Ans: a legally enforceable and binding agreement between parties wherein a promise
to do or not do something is given in exchange for valuable consideration


counteroffer

Ans: a contract proposal submitted in response to a previous offer, modifying the
terms of the original offer; considered a rejection of the original offer


disability

Ans: a physical or mental impairment that substantially limits one or more major life
activities, the record of such impairment, or being regarded as having such an
impairment


earnest money

Ans: funds paid to confirm or commit to a contract


effective date

Ans: the date a contract becomes binding between the parties


endorsement

Ans: additional coverage that can be added onto an insurance policy


escrow




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