Texas Promulgated Contract Forms Study Guide Exam with Complete Solution

Texas Promulgated Contract Forms Study Guide Exam with Complete Solution 1. What determines whether someone is a competent party? {{Correct Ans- At least 18 years of age Mentally competent Cannot be temporary incompetent 1. What is the minimum age a person must have attained to be of legal age in Texas? {{Correct Ans- 18 1. To make a valid contract, there must be four elements including Agreement, Competent Parties and Legal objective. Which one is missing? {{Correct Ans- Consideration 1. What are the four basic elements of a contract? {{Correct Ans- Agreement Competency Consideration Legal Objective 1. What group administers the Texas Real Estate License Act? {{Correct Ans- Texas Real Estate Commission TREC 1. What is misrepresentation? {{Correct Ans- An error 1. What is a court's primary objective when interpreting a contract? {{Correct Ans- To ascertain and give effect to the intent of the parties 1. What is duress? {{Correct Ans- Use of force 1. What is it called when all terms in a contract are agreed to by all parties of the contract? {{Correct Ans- Mutual Agreement 1. Consideration is also known as what? {{Correct Ans- Something in exchange for something else 1. What is it called when someone listens to both sides of the situation and makes a decision? {{Correct Ans- Arbitration 1. Who is responsible for making sure all applicable addenda have been included with the contract? {{Correct Ans- You are, the clients agent 1. What legal status does a void contract have {{Correct Ans- A contract that never existed 1. Fraud in a contract makes it what? {{Correct Ans- Voidable 1. What type of contract is it when two parties agree to and then sign it? {{Correct Ans- Executed