Texas Promulgated Contract Forms - Chapter 1
Void
A contract that is missing one or more of the elements of a valid contract is considered...? Enforceable Executed Expired Void
Statute of limitations
A law establishing the time period within which certain lawsuits may be brought is known as the...? Statute of frauds Statute of law Statute of limitations Statute of contracts
Binding
A valid contract must be .......... and enforceable? Binding Waived Notarized Recorded
Addendum
Additional pages of material that are added to and become part of a contract are referred to as a/an...? Addendum Amendment Bulletin RFP
Executory
An assignment can occur when a contract is...? Executory Executed Void Enforced
Mutual agreement
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 Consideration Competent parties Lawful objective
Voidable
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? Unenforceable Voidable Executed Expired
Amendment
A change in a legal document made by adding, altering, or omitting a certain part or term is referred to as a/an...? RFP Bulletin Addendum Amendment
Bilateral contract
A contract in which each party promises to do something is referred to as a...? Unilateral contract Bilateral contract Void contract Exclusive contract
In-progress
An executory contract is...? Void Unenforceable Completed In-progress
Unilateral contract
An options contract is an example of a/an...? Unilateral contract Bilateral contract Void contract Unenforceable contract
Consideration
Anything given or promised by a party to induce another to enter into a contract is referred to as...? Performance Acknowledgement Consideration Novation
Majority
In order to be considered a competent party, an individual must be of the age of the...? Majority Minority Other party None of the above
Must be in-writing
John is about to enter into a contract with Amy, to purchase Amy's house. The real estate sales contract between John and Amy...? May be oral May lack consideration May be in-writing or oral Must be in-writing
Void
To have no force or effect is referred to as a .......... contract? Void Valid Enforceable Executed
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 Bilateral contract Void contract Exclusive contract
All of the above
Which of the following is an example of a bilateral contract...? Listing contract Sales contract Independent contractor agreement All of the above
A buyer has entered into a contract to purchase a commercial property but the city has now rezoned the property as residential
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 The property was substantially damaged in a fire The buyer could not obtain financing to purchase the property The parties agreed to terminate the contract
Effective date
The date a contract starts is known as the...? Effective date Legal date Signature date Commencement date
Statute of Frauds
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 Statute of Limitations Statute of Contracts Statute of Records
Voidable contract
A contract in which one of the parties is a minor is considered a...? Void contract Executed contract Voidable contract Waived contract
Non-fraudulent party
A contract in which there is fraud by either commission or omission is voidable by the...? Either the non-fraudulent or fraudulent party Fraudulent party The contract is not voidable Non-fraudulent party
May be oral or in-writing
A lease with a term of less than one year...? Must be notarized May be oral or in-writing Must be oral Must be in writing
Competent parties
A party to a contract that is forced to sign a contract under duress violates this element of a valid contract...? Consideration Competent parties Mutual agreement Lawful objective
Assignment
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 Amendment Novation Bulletin
Performance contract
A typical real estate sales contract between a buyer and seller is considered a/an...? Unenforceable contract Performance contract Void contract Forbearance contract
Breach of contract
A violation of any of the terms or conditions of a contract without legal reason leads to a/an...? Assignment of contract Breach of contract Amendment of contract Novation of contract
Performance
The execution of a contract by which the contracting parties are automatically discharged of their obligations under it is known as...? Consideration Novation Performance Void
Novation
The substitution or exchange of a new obligation or contract for an old one by the mutual agreement of the parties is known as...? Amendment Bulletin Novation Assignment
Options contract
Which of the following is an example of a forbearance contract...? Listing contract Options contract Sales contract All of the above
All of the above
Which of the following is an example of a termination of a contract...? Substantial performance Partial performance Impossibility of performance All of the above
All of the above
Which of the following is an example of consideration...? Money Personal services Cash All of the above
Amend the existing contract
Which of the following may be used as an alternative to novation...? Transfer the existing contract Discharge the existing contract Amend the existing contract None of the above
Leases under one year
Which of the following real estate contracts does not have to be in-writing...? Real estate sales contract Leases under one year Listing contracts All real estate contracts must be in writing