Texas Promulgated Contracts
Exam Questions and Answers
100% Pass
addenda - CORRECT ANSWER:-additions to a completed contract that specify
supplementary information to the contract
amendment - CORRECT ANSWER:-change or modification to an already agreed-
upon contract
bilateral contract - CORRECT ANSWER:-a contract wherein both parties are
obligated to perform in an exchange of promises
buyer rebate - CORRECT ANSWER:-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 - CORRECT ANSWER:-a sudden, unexpected event like a fire,
flood, storm, earthquake that causes damage to a property
consideration - CORRECT ANSWER:-something of value exchanged by the
parties as evidence of agreement to the terms of a contract
, contract - CORRECT ANSWER:-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 - CORRECT ANSWER:-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 - CORRECT ANSWER:-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 - CORRECT ANSWER:-funds paid to confirm or commit to a
contract
effective date - CORRECT ANSWER:-the date a contract becomes binding
between the parties
endorsement - CORRECT ANSWER:-additional coverage that can be added onto
an insurance policy
escrow - CORRECT ANSWER:-a process in which funds and/or financial
documents are held by a disinterested third party on behalf of the other two parties
in the real estate transaction until specific conditions are satisfied
executed contract - CORRECT ANSWER:-a contract in which all terms have been
fulfilled by all parties
Exam Questions and Answers
100% Pass
addenda - CORRECT ANSWER:-additions to a completed contract that specify
supplementary information to the contract
amendment - CORRECT ANSWER:-change or modification to an already agreed-
upon contract
bilateral contract - CORRECT ANSWER:-a contract wherein both parties are
obligated to perform in an exchange of promises
buyer rebate - CORRECT ANSWER:-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 - CORRECT ANSWER:-a sudden, unexpected event like a fire,
flood, storm, earthquake that causes damage to a property
consideration - CORRECT ANSWER:-something of value exchanged by the
parties as evidence of agreement to the terms of a contract
, contract - CORRECT ANSWER:-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 - CORRECT ANSWER:-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 - CORRECT ANSWER:-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 - CORRECT ANSWER:-funds paid to confirm or commit to a
contract
effective date - CORRECT ANSWER:-the date a contract becomes binding
between the parties
endorsement - CORRECT ANSWER:-additional coverage that can be added onto
an insurance policy
escrow - CORRECT ANSWER:-a process in which funds and/or financial
documents are held by a disinterested third party on behalf of the other two parties
in the real estate transaction until specific conditions are satisfied
executed contract - CORRECT ANSWER:-a contract in which all terms have been
fulfilled by all parties
