Texas Promulgated Contracts Exam Questions with Verified Answers

In 1939, the legislator passed what law? - Answer- Real Estate Dealers License Act (REDLA) which meant all RE agents must obtain a license Competent Parties Summary:(3) - Answer- Must be 18 + years of age Must be mentally competent Cannot be temporary incompetent The Texas Real Estate Commission regulates a licensee in which of the following situations? - Answer- when license sell house for client: which the licensee is acting in a third-party position What is a legal agreement between parties to do (performance) or not to do (forbearance) a certain act for consideration? - Answer- a contract Mutual Assent Summary (2) - Answer- Agreement to all the terms Agreement by all the parties two types of consideration - Answer- Valuable consideration is something of value Good consideration is love and affection Consideration Summary - Answer- Something given in exchange for something else Assignment - Answer- One of the parties to a contract may choose to assign the contract to a third individual. Notation - Answer- write up a new agreement with the existing parties Mediation(non-binding) - Answer- the third party mediator is simply a facilitator attempting to keep both parties talking until they can reach a solution (preferred method) no schooling needed Arbitration - Answer- the arbitrator listens to both sides of the situation and makes a decision. His or her decision is binding and court action cannot be pursued. require law degree/similar