Promulgated Contract Forms

Question 1

Elements of a valid and enforceable contract are

Answer 1

-Competent parties
-Offer and acceptance (mutual consent)
-Legal purpose
-In writing (when required by law)
-Consideration

Question 2

Valid Contract

Answer 2

It meets all of the requirements of the law.

Question 3

Void Contract

Answer 3

It is an invalid from the beginning and does not affect the parties.

Question 4

Voidable Contract

Answer 4

cannot be enforced against one or more of the parties. Most contracts entered into with minors are voidable at the option of the minor.

Question 5

Consideration

Answer 5

is defined as the exchange of promises.

Question 6

Earnest money is not one of the requirements of a

Answer 6

valid contract.

Question 7

Texas Real Estate Broker-Lawyer Committee was created to

Answer 7

draft and revise contracts forms capable of standardization for use by real license holders.

Question 8

TREC Promulgated forms

Answer 8

-One to four Family Contract
-New Home Contract (Inc Cons)
-New Home Contract (Com Cons)
-Unimproved Property Contract
-Residential Condominium Contract
-Farm and Ranch

Question 9

TREC can

Answer 9

suspend or revoke a license on proof that the license holder drew a deed, note, deed of trust, will, or other written instrument that transferred or affected the title to or an interested in land.

Question 10

Amendments

Answer 10

-Changes to the closing date
-Changes to he sales price, down payment, and/or amount financed.
-Repairs that the seller agrees to perform.
-Removal or waiver of contingencies.

Question 11

Assignment

Answer 11

of a contract transfers all of the related to the contract to another party, known as an assignee.

Question 12

Failure to file suit within the time allowed will result in the part losing his or her rights under the contract is called ______.

Answer 12

doctrine of laches.

Question 13

Partial performance

Answer 13

One party to a contract may accept the partial performance of the other and terminate the contract.

Question 14

right of first refusal

Answer 14

in a lease gives the tenant the right to purchase the leased property by matching or bettering any offer before the property will be sold to someone else.

Question 15

All offers must be presented, no matter how low or ridiculous. True or False

Answer 15

True

Question 16

How can an offer be communicated.

Answer 16

-Phone
-Fax
-Email
-Letter
-Hand Deliver

Question 17

What time frame an offer must be presented to the client.

Answer 17

Presented in a timely manner

Question 18

The party making the offer is called the __________.

Answer 18

offeror

Question 19

The party to whom to offer is made is the _________.

Answer 19

offeree

Question 20

Counteroffer

Answer 20

is when a party changes an offer in some way and communicates the change to the party.

Question 21

Multiple Offers

Answer 21

if a broker receives more than one offer, all offers must be presented to the seller.

Question 22

When does the offer become a contract?

Answer 22

An offer becomes a binding contract when all parties sign it, and the acceptance is communicated to the offering party.

Question 23

Communication is also refered to as _________.

Answer 23

notification