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 - correct
... [Show More] answer The answer is valid. A valid contract meets all of the required essential elements (i.e., offer and acceptance, consideration, legal purpose, consent, and legal capacity).
A valid legal contract must have - correct answer legally competent parties. The parties must be of legal age and have enough mental capacity to understand the nature or consequences of their actions in the contract.
A contract is said to be bilateral if - correct answer all parties to the contract exchange binding promises. Bilateral mean that each of the parties agrees to give something (i.e., buyer and seller, seller and listing broker, landlord and tenant).
A contract can be discharged or terminated - correct answer by impossibility of performance. Impossibility of performance means that an act required by the contract cannot be legally accomplished. For example, suppose a contract stipulates that a buyer must be able to park his RV in the driveway of the property. After research, it is determined that deed restrictions prohibit that action.
The statute of limitations for a written contract for the sale of real estate in Texas is - correct answer four years. In Texas, the statute of limitations for filing a legal suit on a written contract is four years. Remember that the statute of frauds requires agreements affecting title to or interest in real estate in Texas to be in writing to be enforceable, so the statute of limitations on a contract for the sale of real estate is four years.
Which of these promulgated forms does NOT include "time is of the essence"? - correct answer Loan Assumption Addendum. The six promulgated contract forms and four addenda include "time is of the essence": Addendum for Sale of Other Property by Buyer, Addendum for Back-Up Contract, Third Party Financing Addendum, and Short Sale Addendum.
One party cancelling or terminating a contract as though it had never been made is - correct answer rescission. Rescission returns the parties to their original positions before the contract, so any monies exchanged must be returned. Rescission is normally a contractual remedy for a breach.
An agreement entered into involuntarily by a party is - correct answer void. This agreement lacks mutual agreement, which means that the parties must enter the contract freely and voluntarily. Without mutual agreement, the agreement is void.
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If parties to a real estate contract in Texas are held to very strict deadlines for performance, the contract likely includes the phrase - correct answer "time is of the essence." Courts must hold the parties to exact performance within the time specified when "time is of the essence."
Which of these addenda does NOT include "time is of the essence"? - correct answer Addendum for Coastal Area Property. The six promulgated contract forms and four addenda include time is of the essence: Addendum for Sale of Other Property by Buyer, Addendum for Back-Up Contract, Third Party Financing Addendum, and Short Sale Addendum.
Which of the following would NOT be considered a competent party? - correct answer The answer is a 30-year-old attorney under the influence of marijuana at the time she entered into an agreement. A competent party is a person who is at least 18 years old, sane, and sober.
A contract may be discharged under substantial performance when - correct answer one party does not complete all the details exactly as the contract requires but has to a large extent performed on the contract, which may be enough to force payment. An example of this is a newly constructed addition to a home that is finished except for polishing the brass door knobs, in which case the contractor may be entitled to the final payment and the contract is discharged.
Which of the following is required for a valid contract? - correct answer The answer is consideration. Consideration is something of legal value offered by one party and accepted by another as an inducement to perform or to refrain from performing some act. Anything that has been bargained for and exchanged is legally sufficient to satisfy the requirement for consideration.
When a contract appears to be valid but may be rescinded or disaffirmed by one or both parties based on some legal principle it is - correct answer voidable. A contract with a minor, for example, is voidable. However, a voidable contract is considered by the courts to be valid if the party who has the option to disaffirm the agreement does not do so within a period of time.
A contract is classified as bilateral if - correct answer all parties to the contract exchange binding promises. A contract is said to be bilateral if both parties to the agreement make promises to each other to do something (promise for a promise).
Which of the following is TRUE regarding amendments and addenda? - correct answer an amendment is completed after a contract has been executed, but addenda are completed at the same time as the sales contract. An amendment is a change or modification to the existing content of a contract, and an addendum contains additional information that is part of the original contract/agreement.
An addendum is - correct answer additional information given in the offer. An addendum is any additional material that is part of the original agreement. If an addendum is needed, it is ideal to have it added to the original contract form during the offer stage.
In Texas, the statute of limitations for an oral contract for a lease of less than one year is - correct answer two years. Under the statute of frauds, leases for one year or less do not have to be in writing. An oral contract for the lease of a property for one year or less has a statute of limitation of two years.
A buyer and seller enter into a contract for the sale of a four-bedroom home. If either party defaults under the contract, the other party has how much time to file a lawsuit for damages? - correct answer four years. In Texas, the statute of limitations for filing a legal suit on a written contract is four years. Remember that the statute of frauds requires agreements affecting title to or interest in real estate in Texas to be in writing to be enforceable, so the statute of limitations on a contract for the sale of real estate is four years.
Once a sales contract is completed with all parties fulfilling their promises, the ownership changing hands, and the seller receiving the sales price amount, the sales contract is a(n) - correct answer executed contract. At closing, after the seller has conveyed the property to the buyer and the seller has received the sales price amount, the contract is considered an executed contract.
The main difference between an amendment and an addendum is that an amendment - correct answer is a change to the existing content in the contract. The use of an amendment and an addendum are often confused. An amendment is a change to what is in the original contract; an addendum is material being added to the contract. In either case, the other party must sign off on the change or addition for the contract to remain in full force.
In Texas, the statute of limitations is two years for - correct answer oral contracts for a lease of less than one year. Under the statute of frauds, leases for one year or less do not have to be in writing. An oral contract for the lease of a property for one year or less has a statute of limitation of two years.
Which of the following is TRUE for the statute of limitations for contracts for the sale of real estate and oral contracts for leases of less than one year? - correct answer statute of limitations is four years for the sale and two years for the lease. In Texas, the statute of limitations for filing a legal suit on a written contract is four years. Remember that the statute of frauds requires agreements affecting title to or interest in real estate in Texas to be in writing to be enforceable, so the statute of limitations on a contract for the sale of real estate is four years. Under the statute of frauds, leases for one year or less do not have to be in writing. An oral contract for the lease of a property for one year or less has a statute of limitation of two years.
The statute of limitations is four years for which of the following? - correct answer a contract for the sale of real estate. In Texas, the statute of limitations for filing a legal suit on a written contract is four years. Remember that the statute of frauds requires agreements affecting title to or interest in real estate in Texas to be in writing to be enforceable, so the statute of limitations on a contract for the sale of real estate is four years. Under the statute of frauds, leases for one year or less do not have to be in writing. An oral contract for the lease of a property for one year or less has a statute of limitation of two years.
In Texas, the statute of limitations is four years for - correct answer contract for the sale of real estate. In Texas, the statute of limitations for filing a legal suit on a written contract is four years. Remember that the statute of frauds requires agreements affecting title to or interest in real estate in Texas to be in writing to be enforceable, so the statute of limitations on a contract for the sale of real estate is four years.
Which of the following is an exception to using TREC promulgated contract forms? - correct answer when the licensee is acting as a principal and not as an agent. One of the exceptions for when a licensee must use a TREC promulgated contract form is in transactions in which the licensee is functioning solely as a principal, not as an agent.
What law specifically prohibits licensees from practicing law? - correct answer Texas Real Estate Licensing Act (TRELA). The TRELA specifically prohibits licensees from practicing law.
How many members are on the Broker-Lawyer Committee? - correct answer 13. The committee is composed of 6 Real Estate Commission appointees (who are licensed real estate brokers) and 6 lawyers, appointed by the president of the State Bar of Texas, and 1 public member, appointed by the governor. They serve staggered six-year terms.
A seller wants to use her own contract. What are the agent's legal options? - correct answer the agent can use the contract because it is an exception. According to Section 537.11(a)(3), transactions for which a contract form has been prepared by a principal to the transaction are an exception to the rule that TREC promulgated forms must be used.
Which of the following is a TREC promulgated contract? - correct answer The answer is Residential Condominium Contract. The Residential Condominium Contract is one of six TREC promulgated contracts.
Which of the following is an exception to using a TREC promulgated contract form? - correct answer transactions in which a United States government agency requires a different form to be used. When a United States government agency requires a specific form to be used, a TREC promulgated form does not need to be used.
Which of the following committees is responsible for drafting and revising contract forms? - correct answer Broker-Lawyer Committee. The Broker-Lawyer Committee drafts and revises contract forms for use by real estate licensees. The purpose is to expedite real estate transactions and reduce controversies while protecting the interests of the parties involved.
According to the Texas Real Estate License Act, which of the following requires that a licensee be a practicing attorney? - correct answer advising a person regarding the validity of title to real property. TRELA Section 1101.654 states that "The commission shall suspend or revoke the license or certificate of registration of a license or certificate holder who is not a licensed attorney in this state and who, for consideration, a reward, or in a pecuniary benefit, present or anticipated, direct or indirect, or in connection with the person's employment, agency, or fiduciary relationship as a license or certificate holder...advises a person regarding the validity or legal sufficiency of an instrument or the validity of title to real property."
What does the Broker-Lawyer Committee do? - correct answer drafts contracts. The Broker-Lawyer Committee develops forms and recommends their adoption, but it is the TREC that promulgates the forms for mandatory use.
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 - correct answer "rejected." The offer should be returned and marked as rejected by the seller to let the buyer know that the seller did not accept the offer.
Which of the following is a TREC promulgated form? - correct answer Addendum for Sale of Other Property by Buyer. The Addendum for Sale of Other Property by Buyer is a TREC promulgated addendum; the other choices are TREC approved forms.
An offer to purchase by a potential buyer is considered accepted when the - correct answer buyer is notified that the seller has accepted the offer. In today's electronic world, there may be a question as to when an acceptance, rejection, or counteroffer has been made and accepted. A standard contract may state that electronic transmissions are valid. [Show Less]