Contracts and Promulgated Forms Practice Question
Question
An agent notices a possible issue before a contract is signed in a Texas real estate transaction involving contract elements. Which statement is most accurate for exam purposes? (Item 73)
Answer choices
- A. Identify offer, acceptance, consideration, capacity, legal purpose, and consent.
- B. A licensee may give legal conclusions instead of recommending qualified legal advice when the issue is uncertain.
- C. A verbal understanding always replaces any written requirement in a real estate transaction.
- D. The licensee should avoid documenting the issue to reduce the chance of later questions.
Correct Answer
A. Identify offer, acceptance, consideration, capacity, legal purpose, and consent.
Explanation
The correct answer is A because contract elements requires candidates to identify offer, acceptance, consideration, capacity, legal purpose, and consent. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound Texas exam practice.
Question details
- Difficulty: easy
- Domain: Contracts and Promulgated Forms
- Objective: contract elements