Texas Promulgated Contract Forms Ch 1-2

How many members of the public are appointed to the Broker/Lawyer Committee by the State Governor...?

1

The Broker/Lawyer Committee is comprised of ......... members?

13

The Texas Real Estate Commission was created in what year...?

1949

Which of the following is an example of a termination of a contract by operation of law...?

A buyer has entered into a contract to purchase a commercial property but the city has now rezoned the property as residential

If a prospective buyer decides to rescind their offer before the seller responds, the prospective buyer should submit which of the following...?

A termination

Once a seller receives an offer, the seller can do which of the following...?

Accept the offer, Make a counter-offer, Reject the offer

TREC has promulgated which of the following types of forms...?

Addenda, Consumer Disclosures, Real estate sales contracts

Which of the following may be used as an alternative to novation...?

Amend the existing contract

A change in a legal document made by adding, altering, or omitting a certain part or term is referred to as a/an...?

Amendment

A change in a legal document made by adding, altering, or omitting a certain part or term.

Amendment

A transfer of benefits and obligations within a contract to a 3rd party who is not originally a party to the contract is known as a/an...?

Assignment

A transfer of benefits and obligations within a contract to a 3rd party who is not originally a party to the contract.

Assignment

A ..........is submitted by a prospective buyer who wants the right of first refusal is the event the current buyer backs out of the contract during the options period?

Back-up offer

A contract in which each party promises to do something.

Bilateral Contract

A contract in which each party promises to do something is referred to as a...?

Bilateral contract

A real estate agent should advise their client that any contract they sign is...?

Binding

The date a contract starts is known as the...?

Effective date

A contract that has been fully performed.

Executed Contract

A contract that has been fully performed is known as a/an...?

Executed contract

An assignment can occur when a contract is...?

Executory

A contract in which something remains to be done by one or both of the parties.

Executory Contract

According to TREC, an offer received by an agent must be presented to the principal...?

Immediately

An executory contract is...?

In-progress

Any changes to a contract must be...?

Initialed by all parties

Which of the following real estate contracts does not have to be in-writing...?

Leases under one year

Which of the following is an example of a bilateral contract...?

Listing contract, Sales contract, Independent contractor agreement

A promulgated form means the use of the form is...?

Mandatory

A contract in which there is fraud by either commission or omission is voidable by the...?

Non-fraudulent party

The substitution or exchange of a new obligation or contract for an old one by the mutual agreement of the parties is known as...?

Novation

The substitution or exchange of a new obligation or contract for an old one by the mutual agreement of the parties.

Novation

Which of the following is an example of a forbearance contract...?

Options contract

Execution of a contract by which the contracting parties are automatically discharged of their obligations under it.

Performance

The Texas Real Estate Commission is responsible for regulating which of the following...?

Residential service companies, Real estate inspectors, Real estate brokers

Which of the following would not fall under the unauthorized practice of law...?

Revealing material facts about the property

According to TRELA, a salesperson's license may be suspended or ............. for the unauthorized practice of law?

Revoked

Which part of a sales contract most leaves an agent liable for the unauthorized practice of law...?

Special Provisions

A law establishing the time period within which certain lawsuits may be brought is known as the...?

Statute of limitations

Which of the following is an example of a termination of a contract...?

Substantial performance, partial performance, Impossibility of performance

A real estate agent cannot pay for a lawyer to act on behalf of his/her client...?

T (True)

Who approves the contract forms drafted by the Broker/Lawyer Committee...?

TREC

Which of the following is responsible for issuing real estate licenses in Texas...?

Texas Real Estate Commission

The Texas Real Estate Commission was created to administer which of the following...?

Texas Real Estate License Act

A real estate agent who gives legal advice to a client is in violation of the...?

Unauthorized practice of law

David is a real estate agent who was recently hired to sell Andrew's home. As a curtesy, David offers to help Andrew draft a sales contract. David may be in violation of which of the following...?

Unauthorized practice of law

A contract that is valid but one that the court will not enforce.

Unenforceable Contract

Having force, or binding force; legally sufficient and authorized by law.

Valid

A contract that is missing one or more of the elements of a valid contract is considered...?

Void

To have no force or effect is referred to as a .......... contract?

Void

To have no force or effect; that which is unenforceable.

Void

Real estate professionals must use ........... of any promulgated forms?

the most current version

When filling out a pre-printed form, a real estate agent cannot do which of the following...?

Add sections to the form, Strike-out sections of the form, Sign on behalf of the principal

Additional pages of material that are added to and become part of a contract are referred to as a/an...?

Addendum

Additional pages of material that are added to and become part of a contract.

Addendum

A valid contract must be .......... and enforceable?

Binding

Once an offer is accepted by a seller and the sales contract is signed, the contract becomes...?

Binding

A violation of any of the terms or conditions of a contract without legal reason.

Breach of Contract

A violation of any of the terms or conditions of a contract without legal reason leads to a/an...?

Breach of contract

A party to a contract that is forced to sign a contract under duress violates this element of a valid contract...?

Competent parties

A valid and enforceable contract must include which of the following elements...?

Competent parties, Consideration, Mutual agreement

Anything given or promised by a party to include another to enter into a contract, e.g., personal services or even love and affection. It may be a benefit conferred upon one party or a detriment suffered by the other.

Consideration

Anything given or promised by a party to induce another to enter into a contract is referred to as...?

Consideration

A real estate salesperson is allowed to provide legal advice to clients if it is in the best interest of the client...?

F (False)

Real estate brokers are allowed to give legal advice while real estate salespersons are not...?

F (False)

In order to be considered a competent party, an individual must be of the age of the...?

Majority

Which of the following is an example of consideration...?

Money, Personal services, Cash

John is about to enter into a contract with Amy, to purchase Amy's house. The real estate sales contract between John and Amy...?

Must be in-writing

A binding contract between a buyer and seller must include which of the following...?

Must be in-writing, Signed by all parties, There must be a mutual agreement between the parties

If one of the parties to a contract does not voluntarily agree to the contract, this element of a valid contract is violated...?

Mutual agreement

The execution of a contract by which the contracting parties are automatically discharged of their obligations under it is known as...?

Performance

A typical real estate sales contract between a buyer and seller is considered a/an...?

Performance contract

According to TREC, a real estate licensee may not do which of the following...?

Practice law, Give legal advice, Discourage a client from hiring a lawyer

Which of the following actions by an agent may be considered as unauthorized practice of law...?

Providing opinions as to the condition of title

A State law requiring certain contracts to be in writing and signed before they will be enforceable at law is known as the...?

Statute of Frauds

A State law, based on an Old English statute, requiring certain contracts to be in writing and signed before they will be enforceable at law, e.g. contracts for the sale of real property, contracts not be performed within one year.

Statute of Frauds

A law establishing the time period within which certain lawsuits may be brought.

Statute of Limitations

Which of the following describes how a contract becomes a promulgated form...?

Texas Real Estate License Act

Which of the following appoints 6 of the members to the Broker/Lawyer Committee...?

Texas State Bar

Which of the following originally drafts the promulgated contract forms...?

The Broker/Lawyer Committee

Curtis is a real estate agent who represents a seller in a transaction. Curtis must present all offers to the seller until which of the following occurs...?

The seller accepts an offer and the parties enter into a binding contract

When one party promises to do something if the other party performs a certain act, but the other party does not promise to perform it; the contract is formed only if the other party does perform the requested act.

Unilateral Contract

An options contract is an example of a/an...?

Unilateral contract

When one party promises to do something if the other party performs a certain act, but the other party does not promise to perform it, it is referred to as a...?

Unilateral contract

That which is capable of being adjusted void, but is not unless action is taken to make it so, is referred to as a/an ............ contract?

Voidable

That which is capable of being adjusted void, but is not unless action is taken to make it so.

Voidable

A contract in which one of the parties is a minor is considered a...?

Voidable contract

When does an offer become a valid contract...?

When all essential elements of a contract are met