Question 1

What are the four essential elements required for a valid real estate contract in Texas?

Accepted Answer

Offer and acceptance (mutual assent), consideration, legally competent parties, and a lawful purpose. Real estate contracts must also be in writing to be enforceable under the Statute of Frauds.

Question 2

Under the Texas Statute of Frauds, which type of real estate agreement MUST be in writing to be enforceable?

Accepted Answer

Any agreement for the sale or conveyance of real estate, or a lease for longer than one year, must be in writing to be enforceable.

Question 3

What is 'consideration' in a real estate contract?

Accepted Answer

Consideration is anything of legal value exchanged between parties, such as money, a promise to act, or a promise to refrain from acting. It is a required element for a valid contract.

Question 4

What is the legal term for a contract that appears valid on its surface but can be voided by one of the parties due to a legal defect?

Accepted Answer

A voidable contract. Examples include contracts signed by a minor or under duress — they are valid until the injured party chooses to void them.

Question 5

What makes a real estate contract 'void' rather than 'voidable'?

Accepted Answer

A void contract has no legal effect whatsoever from the beginning because it lacks an essential element, such as having an illegal purpose or involving a legally incompetent party who cannot contract.

Contracts & Agreements – Texas Real Estate Salesperson Exam

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