Texas Promulgated Contract Forms Final Exams Questions and Answers

Which of the following is an example of a Bilateral contract? - Answer-A Promise in exchange for a promise - Purchase Contract. Unilateral Contracts - Listing Agreement, Buyer's Rep, Option Contract Who is responsible for filling in the effective date, who, when & what? - Answer-Broker. Between the buyer and the seller, The date on which the communication was made. The date of initialing and signing of the parties. The last party to initial/Sign fills in the day. Broker. Last party to accept must communicate back to other party & fill in the date What is a legal proceeding brought by a party to a contract against another party to compel action called for in the agreement? - Answer-Breach of a contract, one-party defaults, sues for specific performance, seek other relief - arbitration, mediation, injunction to sue for compensatory Damages. If a seller fails to provide the buyer with the seller's disclosure of property condition as required by Section 5.008 of the Texas Property Code, what is the status of the purchase contract? - Answer-Voidable at the option of the buyer. Voidable by buyer any time prior to closing and the earnest money will be refunded to the buyer. Which term identifies the substitution of a new contract for an existing contract? - Answer-Novation When using a Power of Attorney to transfer title to real property? - Answer-Attorney-in-fact - Legal description and the subject of the authority Who must convey to the principal all known information that would affect the principal's decision to accept or reject offers? - Answer-Licensee - the listing agent/selling agent When a legally enforceable promise is exchanged for a legally enforceable promise? - Answer-It is a Bilateral Contract. If the seller has already sent a counteroffer to a prospective buyer and then receives another offer that is even better, the seller: - Answer-Withdraw the counteroffer first then consider new offer Which law requires the contract for real property to be in writing and signed to be enforceable? - Answer-Statute of Frauds To have a valid real property contract, something of value must be exchanged. This is called: - Answer-Consideration