Texas Real Estate Contracts - Chapter 1, Pre-test

The correct answer is "Broker Lawyer Committee." A Broker Lawyer Committee is a group of professionals comprised of both real estate brokers and lawyers who collaborate to create standardized contract forms for the Texas Real Estate Commission (TREC). These contract forms are used in real estate transactions and provide a framework for legally binding agreements between buyers and sellers. The committee ensures that the contract forms are in compliance with relevant laws and regulations, making them a reliable resource for real estate professionals in Texas.

A bilateral contract is a type of contract where both parties involved are obligated to perform certain actions or fulfill certain obligations. In this type of contract, both parties have mutual promises and responsibilities. Unlike a unilateral contract where only one party is bound to perform, a bilateral contract requires both parties to fulfill their obligations. This means that if one party fails to perform, the other party can take legal action against them for breach of contract. Therefore, a bilateral contract is the correct answer as it best describes a contract where both sides must perform.

The term "Statute of Frauds" refers to a law that mandates certain contracts to be in writing to be legally binding. This law is in place to prevent fraudulent activities and ensure that important agreements are documented. By requiring written contracts, it becomes easier to prove the terms and conditions agreed upon by both parties, reducing the likelihood of disputes or misunderstandings.

The correct answer is "Option". An option agreement is a contract that gives a potential buyer the right, but not the obligation, to purchase a property at a predetermined price and terms for a specified period of time. This allows the potential buyer to secure the property and lock in the purchase price, while they decide whether or not to proceed with the purchase.

A contract is a legally binding agreement between two or more parties where they agree to perform certain actions or refrain from doing something. It outlines the rights and obligations of each party involved. Contracts can be written or verbal, but it is recommended to have a written contract for clarity and enforceability. This agreement can cover various aspects such as business transactions, employment terms, or property agreements. Both parties must agree to the terms and conditions stated in the contract for it to be valid and legally binding.