TEXAS LAW OF CONTRACTS CUMULATIVE EXAM QUESTIONS
AND ANSWERS
abstract of title - CORRECT ANSWER✅✅an abbreviated history of a property, including info on any
transfers, grants, wills, conveyances, liens, and encumbrances
acceleration clause - CORRECT ANSWER✅✅clause in a security instrument (mortgage/deed of trust)
which makes the entire loan amount due immediately upon default
accessible - CORRECT ANSWER✅✅that which can be approached, entered, or viewed without hazards,
specialized equipment, or damaging property
accession - CORRECT ANSWER✅✅refers to the acquisition of new land or real property by artificial or
natural means
actual damages - CORRECT ANSWER✅✅monetary compensation given to an injured party for losses
that were a result of the actions or omissions of another party
actual notice - CORRECT ANSWER✅✅notice given to a specific party regarding the ownership of a
property
adaptation - CORRECT ANSWER✅✅the use and modification of a particular item for a specific use in a
property — specific use for a property could deem an item as real property
addenda - CORRECT ANSWER✅✅documents containing additional terms, information, or obligations
that are attached to a contract / a document that's attached to a purchase agreement that includes
additional information or requests items not included in the purchase agreement
agency - CORRECT ANSWER✅✅a relationship where one party is authorized to act on behalf of the
other
air rights - CORRECT ANSWER✅✅ownership rights to the air above a property, extending from the
surface of the land up into space
,alienation - CORRECT ANSWER✅✅the process and act of transferring property from one party to
another
allodial system - CORRECT ANSWER✅✅system of ownership in which land is owned completely,
without an obligation of services or duties to another
amendment - CORRECT ANSWER✅✅a document that changes the terms in a sales contract that has
been previously agreed to by all the parties; requires all parties to sign the amendment for it to be valid
/ a change in a legal document made by adding, altering, or omitting a certain part or term
Americans with Disabilities Act - CORRECT ANSWER✅✅identified and defined protected disabilities, as
well as required all new buildings with employees or public access to provide reasonable access for
people with protected disabilities
annexation - CORRECT ANSWER✅✅attaching (or affixing) personal property to real estate in a way that
transforms the personal property into real property
approved contracts - CORRECT ANSWER✅✅contracts that are allowed by the Texas Real Estate
Commission but not required
assignment - CORRECT ANSWER✅✅the transference of obligations in a contract from one party to
another
beneficiary - CORRECT ANSWER✅✅the recipient of advantage or gain from an act or instrument such
as a trust, will, or insurance policy
bilateral - CORRECT ANSWER✅✅having or involving two sides, often with some degree of reciprocal
impact or obligation
bill of sale - CORRECT ANSWER✅✅a certificate of transfer of personal property
, breach of contract - CORRECT ANSWER✅✅occurs when the terms or conditions of a contract have
been violated
closing - CORRECT ANSWER✅✅the final step in the home-buying process, during which the title to the
property is transferred from the seller to the buyer and consideration is paid to the seller
common law - CORRECT ANSWER✅✅the side of law which arises from judgements and decisions made
in courts rather than explicit legislation
community property - CORRECT ANSWER✅✅a special form of joint tenancy that exists between a
married couple, with each owning a one-half interest; any house or real estate purchased during a
marriage is considered community property
Community Reinvestment Act - CORRECT ANSWER✅✅legislation that ensures depository institutions
meet the credit needs of low- and moderate-income families
competent - CORRECT ANSWER✅✅the mental capacity of an individual to participate in legal
proceedings or transactions
conditional acceptance - CORRECT ANSWER✅✅acceptance based upon a specific condition or event
happening
condominium - CORRECT ANSWER✅✅property where each owner has a separate interest in their own
unit and undivided interest in the common areas
consideration - CORRECT ANSWER✅✅something of value exchanged by the parties as evidence of
agreement to the terms of a contract
constructive notice - CORRECT ANSWER✅✅recording of a deed in publicly accessible records
AND ANSWERS
abstract of title - CORRECT ANSWER✅✅an abbreviated history of a property, including info on any
transfers, grants, wills, conveyances, liens, and encumbrances
acceleration clause - CORRECT ANSWER✅✅clause in a security instrument (mortgage/deed of trust)
which makes the entire loan amount due immediately upon default
accessible - CORRECT ANSWER✅✅that which can be approached, entered, or viewed without hazards,
specialized equipment, or damaging property
accession - CORRECT ANSWER✅✅refers to the acquisition of new land or real property by artificial or
natural means
actual damages - CORRECT ANSWER✅✅monetary compensation given to an injured party for losses
that were a result of the actions or omissions of another party
actual notice - CORRECT ANSWER✅✅notice given to a specific party regarding the ownership of a
property
adaptation - CORRECT ANSWER✅✅the use and modification of a particular item for a specific use in a
property — specific use for a property could deem an item as real property
addenda - CORRECT ANSWER✅✅documents containing additional terms, information, or obligations
that are attached to a contract / a document that's attached to a purchase agreement that includes
additional information or requests items not included in the purchase agreement
agency - CORRECT ANSWER✅✅a relationship where one party is authorized to act on behalf of the
other
air rights - CORRECT ANSWER✅✅ownership rights to the air above a property, extending from the
surface of the land up into space
,alienation - CORRECT ANSWER✅✅the process and act of transferring property from one party to
another
allodial system - CORRECT ANSWER✅✅system of ownership in which land is owned completely,
without an obligation of services or duties to another
amendment - CORRECT ANSWER✅✅a document that changes the terms in a sales contract that has
been previously agreed to by all the parties; requires all parties to sign the amendment for it to be valid
/ a change in a legal document made by adding, altering, or omitting a certain part or term
Americans with Disabilities Act - CORRECT ANSWER✅✅identified and defined protected disabilities, as
well as required all new buildings with employees or public access to provide reasonable access for
people with protected disabilities
annexation - CORRECT ANSWER✅✅attaching (or affixing) personal property to real estate in a way that
transforms the personal property into real property
approved contracts - CORRECT ANSWER✅✅contracts that are allowed by the Texas Real Estate
Commission but not required
assignment - CORRECT ANSWER✅✅the transference of obligations in a contract from one party to
another
beneficiary - CORRECT ANSWER✅✅the recipient of advantage or gain from an act or instrument such
as a trust, will, or insurance policy
bilateral - CORRECT ANSWER✅✅having or involving two sides, often with some degree of reciprocal
impact or obligation
bill of sale - CORRECT ANSWER✅✅a certificate of transfer of personal property
, breach of contract - CORRECT ANSWER✅✅occurs when the terms or conditions of a contract have
been violated
closing - CORRECT ANSWER✅✅the final step in the home-buying process, during which the title to the
property is transferred from the seller to the buyer and consideration is paid to the seller
common law - CORRECT ANSWER✅✅the side of law which arises from judgements and decisions made
in courts rather than explicit legislation
community property - CORRECT ANSWER✅✅a special form of joint tenancy that exists between a
married couple, with each owning a one-half interest; any house or real estate purchased during a
marriage is considered community property
Community Reinvestment Act - CORRECT ANSWER✅✅legislation that ensures depository institutions
meet the credit needs of low- and moderate-income families
competent - CORRECT ANSWER✅✅the mental capacity of an individual to participate in legal
proceedings or transactions
conditional acceptance - CORRECT ANSWER✅✅acceptance based upon a specific condition or event
happening
condominium - CORRECT ANSWER✅✅property where each owner has a separate interest in their own
unit and undivided interest in the common areas
consideration - CORRECT ANSWER✅✅something of value exchanged by the parties as evidence of
agreement to the terms of a contract
constructive notice - CORRECT ANSWER✅✅recording of a deed in publicly accessible records
