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 ...

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 1. What is the definition of an executory contract? {{Correct Ans- Contract for deed lease option purchase option longer than 180 days 1. Who fills out the Seller's Disclosure Notice? {{Correct Ans- The seller 1. What is the best solution to solve a situation when the seller and buyer agree to alter a binding One to Four Family Residential Contract (Resale)? {{Correct Ans- The amendment must be completed and signed by both parties 1. How can an agent determine the terms of the buyer's loan when completing the Third Party Financing Addendum? {{Correct Ans- The lender will provide this information after negotiations with the buyer 1. Alicia is set to close on her new home in three days, but today she received a phone call from her agent stating that the lender needs to push closing back seven days. What, if any, action needs to be done? {{Correct Ans- Alicia's agent should submit an "Amendment to Contract" with the new closing date to the seller's agent. 1. In completing a sales contract, the sale price should equal what? {{Correct Ans- Both the down payment and the loan amount are added together 1. What form is used when the buyer wants to cancel the contract? {{Correct Ans- Buyer's termination of contract 1. Which item cannot be changed or modified by completing the Amendment form? {{Correct Ans- Brokerage fee (commission) 1. What does the Four Corners Doctrine direct a judge to look at? {{Correct Ans- Document as a whole 1. If a party feels they have been wronged, what law sets the length of time they are allowed to bring a civil lawsuit? {{Correct Ans- Statute of Limitations 1. How long is the Statute of Limitations for a written contract in Texas? {{Correct Ans- Four years 1. How long is the Statute of Limitations for an oral contract in Texas? {{Correct Ans- Four years