Exam (elaborations)
Law of Contracts Test Questions and Answers 2024
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Law of Contracts Test
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Law of Contracts TestUnder the Uniform Commercial Code, all sales over what amount must be in writing?
a. $500
b. $1,000
c. $2,000
d. $5,000 - answera.
The Uniform Commercial Code as adopted in the United States requires a written
contract for tangible product sales in excess of $500 and real estate contracts are
required to be written. If the contract is not required by law to be written, an oral contract
is valid and therefore legally binding.
Actual ownership of a property is called ______.
a. Deed
b. Mortgage
c. Title
d. Trust - answerc.
Title to real estate means the right to or ownership of land. It represents the owner's
bundle of legal rights
Which one of the following is NOT a type of acceptance?
a. Express
b. Implied
c. Uniform
d. Conditional - answerc.
Acceptance shows that the parties agree to the contract and are willing and able to
perform the contract. There are three types of offers and acceptance: express, implied
and conditional
To what does "bounds" refer?
a. The direction of the boundaries that encompass a property
b. The distance measurements used in the legal description
c. The perimeter of a property
d. The latitude and longitude system of mapping - answera.
,Metes refers to. the distance measurements used in the description and bounds refers
to the directions of the boundaries that enclose the parcel of real estate
Which of the following statements about TREC contracts is NOT true?
a. There are difference TREC contracts for difference purposes. 6
b. TREC contracts must be in writing
c. TREC contracts must identify the subject property
d. TREC contracts must identify comparable properties - answerd.
TREC contracts don't have to identify comparable properties
What is the very best proof of ownership property?
a. General warranty deed
b. Deed of trust
c. Note
d. Quit claim deed - answera.
The most common type of deed is a general warranty deed which shows that the
grantor transferred clear title to the current owner.
A quitclaim deed also proves the existence of land ownership, but the current owner
may only possess a limited form of ownership in the property. When an individual uses
a quitclaim deed to transfer the property, the new owner only receives whatever interest
the prior owner had in the property.
What licensing is required for mortgage lenders in Texas?
a. State mortgage license
b. National mortgage license
c. No mortgage license
d. Both a Texas and national mortgage license - answerd.
Both a Texas and a national mortgage license is required for mortgage lenders in Texas
Actual ownership of a property is called
a. Deed
b. Mortgage
c. Title
d. Trust - answerc.
Which type of agency agreement involves the principal appointing the agent and agent
accepting?
, a. Express
b. Implied
c. Ratified
d. General - answera.
Most agency relationships are formed by express agreement where a principal appoint
an agent and the agent accepts.
The term "condemnation" is used to describe the formal act of the exercise of the
________.
a. Power of eminent domain to transfer title to the property from its private owner to the
government for public use
b. Police power to transfer title to the property by escheat
c. The power of the city to raise the taxes
d. The power of the state to use descent and distribution - answera.
The term "condemnation" is used to describe the formal act of the exercise of the power
of eminent domain to transfer title to the property from its private owner to the
government
The Statute of Frauds is a law that _____________.
a. Holds people responsible if they do not disclose things about the property
b. Makes a contract void
c. Makes a contract unenforceable
d. Says real estate contracts must be in writing and signed by the person to be charged
to be enforceable - answerd.
The Statute of Frauds states that real estate contracts must be in writing and signed by
the person to be charged to be enforceable
It is not the unauthorized practice of law if the form is ____________.
a. Adopted by the commission for the type of transaction for which the form is used
b. Prepared by an attorney licensed in this state and approved by the attorney for the
type of transaction for which the form is used
c. Prepared by the property owner or by an attorney and required by the property owner
d. All of the above - answerd.
Real estate licensees are able to complete (fill in the blanks of) real estate contracts
promulgated by TREC, but they are not able to create and draw up contracts that
transfer real property ownership or provide legal advice to clients
When does contract performance occur?
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