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Question 1
What are the four essential elements required for a valid real estate contract in Texas?
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?
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?
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?
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'?
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.