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Promulgated Forms Study Questions

Terms in this set (84)

A seller and buyer have entered into a sales contract, and the seller fails to deliver title to the buyer. This is an example of...
breach of contract.
A legally enforceable agreement under which two parties promise to do something for each other is classified as a(n)...
bilateral contract.
In terms of contract law, one description for a 15-year old would be...
Incompetent
Your 17-year-old son signs the notes and contract to purchase a condo so he can move out of the house. He provides the earnest money he has been saving from his part-time job and says his uncle will provide the financing. You inform him the contract is void and he won't be able to go through with the deal. You are...
wrong. The contract is voidable at the election of the minor, but it is not void.
The statute of limitations for a written contract for the sale of real estate in Texas is...
four years.
Your client has asked you to add time is of the essence to a couple of the provisions of the purchase contract. What is your most appropriate response?
"I'm not sure that is a good idea, but you and the buyer should consult with your attorneys about this."
The painter contracts to paint the exterior of the home for $1,750 plus the cost of paint and any other necessary materials. About three-fourths of the way through the job, the contractor breaks his leg and can't finish. The owner offers to pay the contract price less deductions for the cost of having the job completed by another painter, and the original painter accepts the offer. The contract has been discharged under the principle of...
substantial performance.

Enough was completed to justify payment less deductions for work remaining to be done. Partial performance would mean enough of the work was done to justify full payment.
In which paragraph of the promulgated contracts does the term time is of the essence appear?
Option to Terminate and Earnest Money
TREC promulgates the Loan Assumption Addendum. In a transaction where a buyer is assuming a seller's loan...
TREC's Loan Assumption Addendum is required.
When a contract contains all of the essential elements that make it legally sufficient or enforceable and is binding in a court of law, it is...
valid.

A valid contract meets all of the required essential elements (i.e., offer and acceptance, consideration, legal purpose, consent, and legal capacity).
If the offer is acceptable to the seller, the offer is signed and dated and returned to the buyer. It is now a contract for sale. If the offer is rejected, the offer is returned to the buyer marked...
"rejected"
The client asks, "What does specific performance mean?" What should the agent answer?
"Generally speaking, it means a court can order someone to perform the terms of a contract rather than just awarding damages for breach of contract. However, you should speak with your attorney about how this might affect you."
Which of these is TRUE regarding the brokers on the Broker-Lawyer Committee?
There are six brokers on the committee.

There are also six lawyers and one public member
According to the Texas Real Estate License Act, which of the following requires that a license holder be a practicing attorney?
Advising a person regarding the validity of title to real property
The Broker-Lawyer Committee consists of how many members?
13
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