Mutual consent ✔✔a “meeting of the minds”
Unilateral Contract ✔✔A contract in which only one party Is obligated to perform. one
sided
Consideration ✔✔something given in exchange for a promise
Option ✔✔an agreement between a buyer and seller giving the buyer the right to
purchase a property at a preset price for a given period of time
Unenforceable Contract ✔✔a contract that cannot be enforced due to some flaw or
other issue in the contract. strictly enforced
valid contract ✔✔is one that meets all of the requirements of law
void contract ✔✔invalid from the beginning, and has no effect on the parties. A contract
to perform an illegal act
voidable contract ✔✔one that cannot be enforced against one or more of the parties
What are the 5 essential elements that must exist for a contract to be considered valid
and enforceable ✔✔Competent Parties
Offer and acceptance (mutual consent)
Legal Purpose
In writing
Consideration
Most contracts entered into with minors are ____ at the option of the
minor ✔✔voidable
executory contract ✔✔contract that is binding on the parties, with one or more of the
parties having contractual duties that have not yet been performed. (40-60 days from
the effective date to closing)
bilateral contract ✔✔contract of sale between a buyer and seller where both made
promises; therefore, both parties have duties to perform. two sided
option ✔✔agreement between a buyer and seller or landlord and tenant
Amendments ✔✔means change. changes to closing date, sales price, down payment
and/or amount financed, repairs or removal or waiver of contingencies
Addenda ✔✔means to further explain. is an attachment that adds or further describes
the rights and duties of the parties
assignment ✔✔of a contract transfers all of the rights related to the contract to another
party
novation ✔✔occurs when a new contract is substituted for an existing one. when a
contract has been marked up with many changes and replaced with a clean copy (must
terminate contract #1)
doctrine of laches ✔✔failure to file suit within the time allowed will result in the party
losing his or her rights under the contract
In Texas, the statue of limitations is years for an oral agreement ✔✔2
In Texas, the statue of limitations is years for a written agreement and 7
years for IRS ✔✔4
if a contract has been entered into with a person who has been judged to be
incompetent, that contract is considered because the person never had the
capacity to enter into it ✔✔void
Promulgated forms ✔✔contract forms published by TREC
Counteroffer ✔✔a rejection of the original offer coupled with a new offer
unauthorized practice of law ✔✔license holders adding complex provisions to a contract
lease-purchase agreement ✔✔an agreement that allows a tenant to purchase a
property during the lease term
offeror ✔✔the party making an offer
In the Texas Real Estate Commission was established to administer and
enforce the act ✔✔1949
TRELA Texas Real Estate License Act was passed that stated an individual in Texas
could not practice real estate without a license in _ ✔✔1939
Broker Lawyer Committee ✔✔writes promulgated contracts 13 members 6 are brokers
6 lawyers and 1 public member
T/F: There are no commercial promulgated contracts ✔✔True