Champions Law of Contracts Practice Exam

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• Which of the following is NOT a requirement for sellers of residential property in Texas?
• Which of the following are classified as tangible chattels?
• What is meant by "rescission" in contract law?
• In contract law, what does the term "consideration" refer to?
• Who insures the "USDA loan" or "Section 502 loan"?
• Regardless of representation, all buyers should be provided with a(n) _______ disclosure of representation at first contact.
• Which type of transactions is considered exempt from RESPA?
• What is the requirement for credit approval in the closing process?
• What must happen if the buyer wishes to terminate a contract based on an inspection report?
• What does "consideration" refer to in contract law?
• Which document is not required to be in writing according to the Statute of Frauds?
• What type of assistance does a client seeking a right of first refusal require?
• What denotes a bilateral contract?
• The process by which a landlord legally removes a tenant from a property is known as ________.
• What would occur if one party does not uphold their end of a contract?
• Which term refers to a contract that is not legally recognized due to one party's lack of capacity?
• What type of lease typically includes property taxes, insurance, and maintenance costs being paid by the tenant?
• What is meant by an "invitation to treat"?
• The T-47 Affidavit must be signed in the presence of whom?
• A _______ is also known as an option contract where only one party is obligated to perform.
• What is a condition precedent in contract law?
• Which type of description of property is a requirement for a valid deed?
• Which term refers to the requirement that a contract must be entered into with the intention to create legal relations?
• What defines a void contract?
• In contract terminology, what does the term "on or before" refer to?
• What does the concept of "capacity of corporations to contract" refer to?
• What is the key distinction between an express contract and an implied contract?
• Who are considered "third-party beneficiaries" in contract law?
• If an extension is agreed upon regarding an option period, how should it be documented?
• In which situation might you invoke the doctrine of commercial impracticability?
• What does a real estate agent do with multiple offers on a property?
• Define "capacity" in the context of contracts.
• What characterizes an enforceable contract?
• What is the definition of a contract?
• What is the role of the offeree in a contract negotiation?
• What term describes a potential polluter who may be held liable under CERCLA for contamination?
• What does a material breach of contract signify?
• Which clause gives a tenant the ability to increase rent based on rising operating costs?
• When an individual acquires title from the rightful owner through hostile, actual, and continuous occupation of the land for the statutory period, ________ occurs.
• What does the term "character" refer to in the context of lending?
• Only a _______ may earn a commission and only a _______ may sue to collect a commission.
• What rights extend above the surface of land without limitation?
• What does "legality" mean in contract law?
• A written document detailing the terms of an agreement to purchase property is known as a ________.
• When a minor enters into a contract, that contract is generally considered what?
• What could lead to a license revocation or suspension by TREC?
• A counteroffer is a two-step process that involves _______.
• The contract should include a(n) __________ in case there are any title problems that the seller has that could become future problems for the new buyer.
• In the context of a real estate contract, what is meant by "executed"?
• What does the "mailbox rule" state in terms of offer acceptance?
• What best describes 'specific performance' in contract law?
• Which rights are not considered a type of real estate right?
• What is defined as something given in exchange for a promise?
• What type of contract involves one party making a promise in exchange for an act?
• Which of the following indicates that both parties have an obligation in a contract?
• What must most sellers of residential property in Texas provide?
• The ______________ is a history or list of all recorded owners of a property all the way back to the sovereignty of the soil.
• Which market is responsible for the buying and selling of existing mortgages?
• Which statement is considered problematic and should not be included in the Special Provisions section of the contract?
• What are "damages" in the context of a breached contract?
• Under which condition can an individual choose not to perform a contract due to incapacity?
• What does "commercial impracticability" refer to in a legal context?
• If a buyer terminates a contract after not delivering the option fee on time, what could be a potential problem?
• What does the term "earnest money" in a real estate transaction refer to?
• Which of the following statements about "capacity" is true?
• What is the implication of a contract being "voidable"?
• Who is referred to as the party that makes an offer in a contract negotiation?
• What is a typical action for a buyer's agent after their client’s offer has been accepted?
• An offer can be communicated by ________.
• What does the parol evidence rule prevent?
• What happens when a party demonstrates substantial performance?
• What is meant by waiver in contract law?
• In contract terms, what does "performance" refer to?
• Which of the following terms refers to a legal document that transfers ownership of real property?
• The process by which a lender exercises its power of sale under a mortgage that is in default is known as which of the following?
• What is the timeframe for delivering the option fee to the seller or her broker after a contract is executed?
• What are the essential elements required for a contract to be valid?
• In many states, recognized statutory estates include _______.
• What typically occurs if a buyer fails to deliver the option fee by the agreed date?
• The blank space provided for the special provisions to the contract allows license holders to insert which of the following?
• What term describes the commitment to perform or refrain from performing a certain action in a contract?
• What is the role of testimony of witnesses in contract disputes?
• What is made when a party changes an offer in some way and communicates the change to the other party?
• Why are "written agreements" important in contracts?
• What might indicate that a contract is unconscionable?
• Which of the following best describes a breach of contract?
• What is the significance of a liquidated damages clause?
• Which term refers to additional clauses added to a contract post-signing that clarify rights and responsibilities?
• If a seller chooses to receive a buyer's earnest money after the buyer defaults on a contract it is known as _______.
• What is the primary function of disclosures in contracts?
• What statute requires that a sender's message contains clear notice that it is an advertisement?
• What is the term for the process through which an individual dies without a valid will?
• Which type of contract is specifically addressed in TREC's promulgated contract forms?
• Any property, whether real or personal, that is capable of being inherited is called a ________.
• The _________ is an employment contract.
• What are man-made additions to the land that are permanent called?
• Common time frames in an escape clause are typically ______.
• What is a remedy in contract law?
• The key to determining whether a conveyance is voluntary is the absence of force, such as ________.
• The lease that provides an incentive to the landlord to build foot traffic in the center with promotions, events and superior maintenance is known as which of the following?
• Which of the following best describes an offeror's responsibilities?
• In a contract, what does "capacity" require from the parties involved?
• In what situation can a voidable contract be declared invalid?
• What is an essential element for a contract to be valid?
• Is it appropriate for an agent to leave an option fee at the title company instead of delivering it to the seller?
• What is another name for personal property?
• In which year was the Texas Real Estate Commission established to administer and enforce the TRELA?
• Ownership of real property can be divided among _______.
• When can an agent exercise apparent authority?
• Contracts with a person who lacks mental capacity can be either void or what?
• What is a liquidated damages clause primarily used for?
• What is the term used for the situation when both parties perform their contractual obligations simultaneously?
• A(n)________is referred to as an action of forcible detainer in most states.
• What is generally required for a valid lease to be enforceable?
• What does the term "capacity to contract" refer to?
• What is the significance of "intention to create legal relations" in contracts?
• What must contracts for the conveyance of real estate or leases over one year comply with?
• When sellers owe more on their mortgage than the market value of their property, what financial situation are they in?
• What does TREC's requirement for mandatory contract forms imply for license holders?
• In property law, which term refers to the right to sell or transfer ownership?
• Which of the following is not a requirement of a valid contract?
• What are "liquidated damages" in a contract?
• ___________ is something of value given in exchange for a promise.
• What is "quantum meruit" in contract law?
• What occurs when unsatisfactory inspection results are found in a contract?
• A lease purchase agreement is one that combines some of the elements of a ________ with a lease.
• What are "exculpatory clauses"?
• What term is often referred to as a meeting of the minds?
• If a buyer fails to deliver the option fee to the seller and later wishes to raise concerns about the property, what could they imply?
• What term describes a situation where a seller cannot sell property for a price that covers their debt to the lender?
• What is a "breach of contract"?
• Which type of contract is formed through the actions of the parties involved?
• What is an attachment that further describes the rights and duties of the parties in a contract?
• What is a voidable contract?
• In contract law, what does "mutual assent" signify?
• Which of the following is true of an addendum to a contract?
• How are contingent contracts defined?
• Who has the responsibility to acknowledge changes to details like an option period or price adjustment in a contract?
• Which document is typically used to secure a loan with real property?
• What role does the listing agent play in a real estate transaction?
• Which of the following elements establishes the foundational commitment to the contract from both parties?
• What detailed process assesses the risk involved when evaluating a borrower's loan application?
• A permanent marker installed on the land by a surveyor is called ______.
• Which of the following is FALSE regarding the closing process?
• Pur autre vie is:
• Who can deliver a contract to the title company during a transaction process?
• What must a mold remediator provide no later than 10 days after completing work?
• Why is "consideration" important in contract law?
• What does a condition subsequent refer to in a contract?
• What characterizes an anticipatory breach?
• What does it mean for a contract to be "legally binding"?
• Which of the following can constitute an offer in contract law?
• What is a significant benefit of conducting a home inspection before closing?
• A(n) ________ is an oral or deathbed will.
• What does the phrase "time is of the essence" imply in a contract?
• According to RESPA, which practice is considered abusive and therefore prohibited?
• Which legal term describes when one party fails to meet their contractual obligations?
• In contract law, what is a primary purpose of an NDA?
• What is the purpose of the option fee in a real estate transaction?
• What is a primary benefit of having written contracts?
• The main reason(s) for homestead laws include(s):
• Which types of contracts does TREC have promulgated sales forms for?
• What is meant by "specific performance" as a remedy?
• How many lease forms has TREC promulgated?
• What is the function of the title company in a real estate transaction?
• In relation to mortgage transactions, what does the 'servicing' process usually cover?
• A __________ is an employment agreement between the seller and the broker.
• All of the land in the U.S. is held under the ________ system.
• Which of the answers provided is described as the percentage of the lesser of the appraised value or sales price that the lender will loan?
• How is a unilateral contract defined?
• Which of the following terms refers to the legal right of ownership in a property?
• In contract law, what does consideration refer to?
• What is the primary purpose of a contract?
• What is a nondisclosure agreement (NDA) designed to do?
• Which market brings together borrowers and lenders to create terms for mortgage transactions?
• What does "actual authority" mean in contract law?
• In what situation would "capacity to contract" not be met?
• A contract that promises in exchange for an act is known as what type of contract?
• What does the concept of waiver influence in contract execution?
• Due to _______ an offer by a prospective purchaser can be terminated prior to acceptance.
• Which federal requirement is applicable to residential properties built prior to 1978?
• What does "unconscionability" imply about a contract?
• What determines whether a buyer has an unrestricted right to terminate a contract?
• In what kind of state does a mortgage represent an actual transfer of ownership from borrower to lender?
• What action is needed when extending the option period?
• When is it common for buyers to request a home inspection?
• Which of the following can terminate a contract?
• What does “offer and acceptance” signify in a contract?
• What essential element ensures that both parties to a contract can understand and agree to its terms?
• What legal doctrine allows minors to void contracts they enter into?
• Which of the following description uses terminal points and angles to describe a parcel of land?
• If a client is interested in a lease with an option to purchase, who’s assistance is required?
• Price, conditions, and ________ are the essential elements of an option agreement.
• What is an "offer" in contract law?
• What type of contract can be voided if a buyer fails to meet required conditions?
• If a claim of interest arises after a title insurance policy is issued, under what circumstance will a title company defend the title?
• What term refers to the legal ability of a party to form a contract?
• Which of the following is a characteristic of a bilateral contract?
• What is the meaning of "apparent authority"?
• What does "capacity of natural persons" mean in contracts?
• In the TAR® Seller's Disclosure, when should the seller prepare the disclosure?
• What is required for a contract to be legally enforceable?
• What constitutes "acceptance" in the context of contracts?
• How can a violation of TREC regulations impact a real estate license?
• A unilateral contract is said to lack what?
• Which of the following best describes an agreement that is not enforceable by law?
• TREC's residential contract forms are mandatory for license holders, with the exception of what?
• In a deed, a limitation placed on the new owner by the grantor is referred to as what?
• What is an unwritten contract?
• What time must the written notice to terminate be delivered to the seller on the last day of the option period?
• What is the purpose of a testimony in a court regarding a contract?
• What consequence can occur if an option period ends without notice?
• Which of the following is NOT considered a common addenda form?
• Which of the following occurs when a new contract is substituted for an existing one?
• In the event of property repairs needed before closing, who is typically responsible?
• A tenant has the right to match or better any offer the landlord may receive on the property before the property may be sold to someone else in a (n) _______.
• Permanent additions to land can also be categorized as what?
• What does substantial performance imply in contract law?
• Which party is generally required to provide an earnest money deposit?