TEXAS PROMULGATED CONTRACTS ACTUAL
EXAM SCRIPT 2026 QUESTIONS AND
ANSWERS GRADED A+
◍ 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
,◍ Litigation Answer:actually lawsuit - and costly
◍ What law requires all contracts for real property to be in writing to be
enforceable? Answer:Statute of Frauds
◍ Recording Acts require Answer:that any claim, interest, or ownership
in real estate be placed in the public records in the county where the
property is located.
◍ What is duress? Answer:use of force
◍ Valid contract Answer:3 of 6 - When a written agreement is legal and
every item is completely agreed to, it is said to be which of the
following?
◍ Void contract Answer:When an essential element is missing in an
agreement and the courts would not hold it as a contract, then the
agreement would be:
◍ Voidable contract Answer:When one party could change their mind
and exit a contract, it is said to be:
, ◍ An unenforceable contract Answer:When one party may be in default
but because of the nature of the agreement, the damaged party would not
have the ability to sue the other party in court, this is what type of
contract?
◍ Express contracts Answer:verbal or in writing that is clear and
definite and would, therefore, be considered express contracts.
◍ implied contract. Answer:any contract that is not clear is usually an
implied contract. The agreement is indicated through the actions of the
parties rather than the written word.
◍ Bilateral contracts Answer:Both parties have rights and obligations
◍ unilateral contract Answer:is a contract in which a party promises to
perform without expectation of performance by the other party.
◍ 1 of 6 - When all promises in a contract have been met, that contract
is called what? Answer:executed
◍ 2 of 6 - What is a contract called where there are still promises that
need to be fulfilled? Answer:executory
◍ elements of contract(4) Answer:agreement
EXAM SCRIPT 2026 QUESTIONS AND
ANSWERS GRADED A+
◍ 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
,◍ Litigation Answer:actually lawsuit - and costly
◍ What law requires all contracts for real property to be in writing to be
enforceable? Answer:Statute of Frauds
◍ Recording Acts require Answer:that any claim, interest, or ownership
in real estate be placed in the public records in the county where the
property is located.
◍ What is duress? Answer:use of force
◍ Valid contract Answer:3 of 6 - When a written agreement is legal and
every item is completely agreed to, it is said to be which of the
following?
◍ Void contract Answer:When an essential element is missing in an
agreement and the courts would not hold it as a contract, then the
agreement would be:
◍ Voidable contract Answer:When one party could change their mind
and exit a contract, it is said to be:
, ◍ An unenforceable contract Answer:When one party may be in default
but because of the nature of the agreement, the damaged party would not
have the ability to sue the other party in court, this is what type of
contract?
◍ Express contracts Answer:verbal or in writing that is clear and
definite and would, therefore, be considered express contracts.
◍ implied contract. Answer:any contract that is not clear is usually an
implied contract. The agreement is indicated through the actions of the
parties rather than the written word.
◍ Bilateral contracts Answer:Both parties have rights and obligations
◍ unilateral contract Answer:is a contract in which a party promises to
perform without expectation of performance by the other party.
◍ 1 of 6 - When all promises in a contract have been met, that contract
is called what? Answer:executed
◍ 2 of 6 - What is a contract called where there are still promises that
need to be fulfilled? Answer:executory
◍ elements of contract(4) Answer:agreement
