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Contracts and Agency Practice Questions for the Texas Exam

Contracts and agency accounts for 16 scored questions on the National portion of the Texas sales agent exam. This free quiz gives you 25 questions on contract terms, consent, remedies and agency duties, with an explanation after each answer. The 10 Texas-law examples below are separate and do not count toward your quiz score.

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Contracts & Agency Practice Questions

25 questions on contracts & agency, scored, each with a full explanation after you answer. Every question is also written out below if you would rather study at your own pace.

25 questions
~19 min
National practice only

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Study mode · National principles

Work through the questions at your own pace.

Choose an answer mentally, then open its explanation. Each question has a source and a point to watch. These are original practice questions, not Pearson VUE exam items or a prediction of your result.

1

An oral agreement to sell land

A buyer and seller agree orally to sell a vacant lot. There is no signed writing, payment or transfer of possession. Assume no exception to the Statute of Frauds applies. How is this agreement classified?

  1. Void because its purpose is unlawful
  2. Voidable only at the seller's election
  3. Unenforceable under the writing requirement
  4. Enforceable once the parties agree on price
Check answer and explanation

Correct answer: C. Unenforceable under the writing requirement

A land-sale agreement generally needs a signed writing to be enforced against a party. The missing writing makes this agreement unenforceable under the stated facts, not void for an illegal purpose. The parties could still choose to complete the sale.

Watch for this: Do not turn a writing requirement into a rule that every oral agreement is void. This question expressly excludes exceptions.

Rule: Statute of Frauds; Texas illustration: Business & Commerce Code 26.01(a), (b)(4)

2

Consent and contract essentials

Competent parties agree on lawful terms and exchange consideration. One signed only because of an unlawful threat. Which requirement is in doubt?

  1. The size of the earnest-money deposit
  2. Whether the agreement was voluntary
  3. The broker's authority to hold funds
  4. Whether the signatures were notarized
Check answer and explanation

Correct answer: B. Whether the agreement was voluntary

An agreement must be voluntary. A signature does not settle that issue if an unlawful threat overcame the person's free choice. Check consent as well as agreement, capacity, consideration and lawful purpose.

Watch for this: Do not substitute a deposit, a broker or notarization for voluntary consent.

Rule: Contract formation: offer and acceptance, voluntary consent; duress

3

A counteroffer is a new offer

A buyer offers $320,000. The seller rejects it and sends a $335,000 counteroffer. The buyer replies, 'I will pay $330,000.' What is the buyer's reply?

  1. An acceptance because the price increased
  2. A revival of the rejected $320,000 offer
  3. A new counteroffer awaiting acceptance
  4. An acceptance subject to a financing term
Check answer and explanation

Correct answer: C. A new counteroffer awaiting acceptance

The buyer changed the price instead of accepting the seller's terms. That reply is another counteroffer. No agreement on price has been reached in this exchange.

Watch for this: A better price is not necessarily an acceptance. Ask whether the response accepts the offered terms or changes them.

Rule: Offer and acceptance; counteroffers

4

A minor's right to disaffirm

An unemancipated 16-year-old signs a purchase contract for an investment lot. It is not a contract for necessaries, and no statutory exception applies. Under the general infancy rule, the contract is

  1. void from the moment both parties sign it
  2. voidable at the election of the minor
  3. binding if the adult seller paid a broker
  4. voidable at the adult seller's election
Check answer and explanation

Correct answer: B. voidable at the election of the minor

The ordinary infancy rule gives the minor a right to disaffirm. It does not give the adult the same right or make every minor's agreement automatically void. The facts exclude exceptions so the question tests the basic capacity rule.

Watch for this: Identify who the law protects. Voidable means that party has a choice, not that the agreement never existed.

Rule: Contract law, capacity and infancy

5

Seeking the property rather than damages

A seller refuses to close a valid land-sale contract. The buyer is ready and able to perform and wants the property, not just compensation. Which remedy should the buyer ask a court to consider?

  1. Specific performance
  2. Compensatory damages
  3. Mutual rescission
  4. Liquidated damages
Check answer and explanation

Correct answer: A. Specific performance

Specific performance asks the court to require the promised performance. It may be appropriate for a land sale because money may not replace the particular property. It is equitable relief, not an automatic award to every disappointed buyer.

Watch for this: Seeking a remedy and qualifying for it are different. The court considers the facts and the requirements for that relief.

Rule: Contract remedies; specific performance

6

Agency created by an agreement

An owner and broker sign a listing agreement authorizing the broker to market the property for the owner. How was the agency relationship created?

  1. Ratification of an unauthorized act
  2. Estoppel based on a third party's belief
  3. Express agreement between the parties
  4. Implication from the parties' conduct
Check answer and explanation

Correct answer: C. Express agreement between the parties

The parties directly agreed to the representation. That is express agency. Agency inferred from conduct is implied; ratification involves approval of an earlier unauthorized act.

Watch for this: Look at how authority was given. A direct agreement is different from conduct that merely suggests an agreement.

Rule: Agency creation; express authority

7

Protecting a client's bargaining position

A seller's agent tells a buyer the seller's confidential minimum price without permission. Which duty most directly concerns that disclosure?

  1. Accounting for client funds
  2. Obedience to lawful instructions
  3. Confidentiality of client information
  4. Reasonable care in evaluating offers
Check answer and explanation

Correct answer: C. Confidentiality of client information

The seller's private bargaining position is confidential. Sharing it without permission can harm the client. That is different from withholding a material property defect, which cannot be hidden behind confidentiality.

Watch for this: Protecting a negotiating position does not excuse deception about the property.

Rule: Fiduciary duties; confidentiality

8

Assignment versus novation

A buyer transfers contract rights to another buyer. The seller then joins both buyers in a replacement agreement that releases the original buyer from further liability. What accomplished the release?

  1. Novation
  2. Assignment
  3. Subrogation
  4. Ratification
Check answer and explanation

Correct answer: A. Novation

Novation replaces an obligation or party with the required agreement and releases the original obligation. Assignment alone does not release the original party from contractual duties. The express release is the decisive fact here.

Watch for this: Transferring rights and being released from obligations are not the same thing.

Rule: Assignment and novation; Seagull Energy v. Eland Energy

9

An unlawful purpose

The sole purpose of an agreement is an activity prohibited by law. No exception or lawful part can be separated from it. How is the agreement classified?

  1. Void for an unlawful purpose
  2. Voidable only by the buyer
  3. Valid once consideration is paid
  4. Executory until a court cancels it
Check answer and explanation

Correct answer: A. Void for an unlawful purpose

A contract cannot require an unlawful act as its purpose. Under these facts, the agreement is void. Payment does not cure that defect, and executory only describes performance still due.

Watch for this: Do not confuse a defect in validity with an unfinished obligation.

Rule: Contract law, legality and consideration

10

The buyer's choice in a paid option

A buyer pays for an option that requires the owner to keep a sale offer open for 30 days. The buyer has not promised to purchase. In standard real-estate exam terminology, this option is

  1. unilateral: the buyer need not purchase
  2. bilateral: the buyer must purchase later
  3. implied: the option fee replaces assent
  4. executed: the purchase is fully performed
Check answer and explanation

Correct answer: A. unilateral: the buyer need not purchase

The owner must keep the offer open for the agreed time, while the buyer may choose whether to purchase. This is commonly taught as a unilateral option. Exercising it is separate from buying the option right.

Watch for this: Do not confuse a purchase option with an unrestricted termination option inside a Texas purchase contract.

Rule: Contract classification; unilateral option

11

Signed is not fully performed

Both parties have signed a valid sales contract. Payment and delivery of the deed are still due. When classifying the contract by performance, it is

  1. executed
  2. rescinded
  3. voidable
  4. executory
Check answer and explanation

Correct answer: D. executory

Executory means obligations remain to be performed. In this classification, executed means fully performed. The word executed can also mean signed in another context, which is why the question specifies performance.

Watch for this: Read the context before choosing a definition of executed.

Rule: Contract classification; executed versus executory

12

A pre-agreed default remedy

A sales contract states that, after a buyer default, the seller may terminate and retain the earnest money as agreed damages. What is the name of that stipulated remedy?

  1. Compensatory damages proved at trial
  2. Specific performance of the sale
  3. Restitution of the buyer's payment
  4. Liquidated damages fixed by agreement
Check answer and explanation

Correct answer: D. Liquidated damages fixed by agreement

Liquidated damages are an amount or formula agreed in advance for a breach. That identifies the remedy; it does not establish that every such clause is enforceable. A clause operating as an unlawful penalty can still be challenged.

Watch for this: A contract's label does not remove judicial review. Also distinguish this remedy from a refund or a claim for specific performance.

Rule: Breach and remedies; liquidated damages

13

Revoking agency and contract consequences

An owner revokes a broker's ordinary listing authority before the listing expires. No agency coupled with an interest is involved. Which statement is most accurate?

  1. Revocation can end authority yet breach the agreement
  2. Revocation always eliminates any commission obligation
  3. The broker must keep acting until the original end date
  4. The buyer becomes the broker's principal upon revocation
Check answer and explanation

Correct answer: A. Revocation can end authority yet breach the agreement

The power to end an ordinary agency relationship is different from the contractual right to do so without consequences. Revocation may end actual authority while leaving a dispute over fees or damages. The agreement and applicable law govern that dispute.

Watch for this: Ending authority does not automatically erase promises already made in the listing agreement.

Rule: Agency termination; revocation and breach

14

Using a financing contingency on time

A financing contingency permits termination and an earnest-money refund if approval fails and the buyer gives timely notice with required lender documentation. Approval fails despite reasonable effort. The buyer meets both notice requirements. What follows under that clause?

  1. The buyer must replace the loan with cash
  2. The deposit becomes damages for the seller
  3. The lender must fund the purchase anyway
  4. The buyer may terminate and recover the deposit
Check answer and explanation

Correct answer: D. The buyer may terminate and recover the deposit

The buyer has met the conditions that the clause sets for termination and a refund. Failure to obtain a loan alone is not enough if a contract also requires action by a deadline. Here, the required action was taken.

Watch for this: Separate the failed condition from the steps needed to exercise the right it creates.

Rule: Sales-contract contingencies and remedies; Texas illustration: TREC 40-11, paragraph 2A

15

Lease duration and the writing rule

Assume the ordinary Statute of Frauds rule requires a writing for land sales and leases longer than one year, with no exception applicable. All leases begin immediately. Which agreement requires a signed writing?

  1. A six-month residential lease
  2. A month-to-month rental agreement
  3. A nine-month commercial lease
  4. A three-year residential lease
Check answer and explanation

Correct answer: D. A three-year residential lease

The three-year lease exceeds one year. The other listed terms do not. This question specifies immediate commencement because a separate rule can cover agreements that cannot be performed within a year of being made.

Watch for this: The lease term and the time from making the agreement to completing it are different measurements.

Rule: Statute of Frauds; Texas illustration: Business & Commerce Code 26.01(b)(5), (6)

16

Express versus implied contracts

A property manager and a cleaner verbally agree on a fee and the work to be done. No rule requires this particular service agreement to be written. How was the agreement expressed?

  1. By implication, because it was not written
  2. Expressly, because the terms were spoken
  3. By estoppel, because services have value
  4. By ratification, because both parties agreed
Check answer and explanation

Correct answer: B. Expressly, because the terms were spoken

Express terms can be stated orally or in writing. An implied-in-fact contract is inferred from conduct rather than words stating the agreement. Whether a writing is required is a separate question.

Watch for this: Express does not mean written only.

Rule: Contract classification; express contract

17

Duress versus a hard bargain

A buyer obtains a seller's signature through an unlawful threat that overcomes the seller's free choice. The facts establish duress. Which statement best describes the seller's position?

  1. The seller may seek to avoid the agreement
  2. The seller is bound because the price is fair
  3. The agreement becomes a unilateral option
  4. The signature cures the threat's legal effect
Check answer and explanation

Correct answer: A. The seller may seek to avoid the agreement

Duress can make a contract voidable by the threatened party. A fair price or a signature does not cure the lack of voluntary consent. Ordinary pressure to accept a lower price is not, by itself, proof of duress.

Watch for this: The decisive fact is the unlawful threat overcoming free choice, not simply an unfavorable bargain.

Rule: Contract formation and remedies; duress

18

Consideration without earnest money

A seller promises to convey a lot and a buyer promises to pay the agreed price. All other requirements are met. The contract does not require an earnest-money deposit. Which statement is correct?

  1. Only a cash deposit can supply consideration
  2. The broker's commission supplies consideration
  3. The exchange of promises supplies consideration
  4. Consideration arises only when the deed is delivered
Check answer and explanation

Correct answer: C. The exchange of promises supplies consideration

Consideration can be an exchange of binding promises. Earnest money is not the same thing as consideration. A separate obligation to deliver a deposit matters if the contract actually includes one.

Watch for this: No required deposit is different from failing to pay a deposit the parties promised to deliver.

Rule: Contract law, consideration

19

Electronic signatures

Parties agree to use electronic records and valid electronic signatures for an otherwise enforceable purchase agreement. Can the agreement be denied legal effect solely because it is electronic?

  1. Yes, because land-sale agreements require ink
  2. No, but only if the broker also signs the agreement
  3. Yes, unless a paper copy is recorded before closing
  4. No, electronic form alone does not invalidate it
Check answer and explanation

Correct answer: D. No, electronic form alone does not invalidate it

Electronic form alone is not a reason to deny legal effect to an agreement or signature under the applicable electronic-transactions rules. Assent, attribution, required content and other contract requirements still matter.

Watch for this: Electronic does not mean exempt from the usual requirements, and a typed name is not automatically proof of another person's assent.

Rule: Electronic contracts; 15 U.S.C. 7001(a); Texas Business & Commerce Code 322.005, 322.007

20

Equitable interest before the deed

A buyer has a valid, enforceable contract entitling the buyer to obtain a deed when the agreed conditions are met. Before the deed transfers legal title, the buyer's contractual interest is generally described in real-estate exam terminology as

  1. legal title free of all existing liens
  2. equitable title under the purchase agreement
  3. a leasehold created by the purchase deposit
  4. a recorded ownership interest in fee simple
Check answer and explanation

Correct answer: B. equitable title under the purchase agreement

Equitable title describes the buyer's interest under the enforceable agreement, distinct from the seller's legal title before conveyance. It does not automatically authorize early possession or erase conditions that still must be met.

Watch for this: A right to acquire title is not the same as already holding the deed or having permission to move in.

Rule: Sales contracts; equitable title

21

Authority for one transaction

A broker is authorized to market one property and bring offers to its owner, but not to sign the owner's sales contract. This limited, transaction-specific authority is typically classified as

  1. universal agency over the owner's affairs
  2. general agency over an ongoing business
  3. special agency for the assigned transaction
  4. dual agency arising from contact with buyers
Check answer and explanation

Correct answer: C. special agency for the assigned transaction

A special agent handles a limited task or transaction. Authority to market property does not itself give the broker authority to sign the owner's contract. The extent of authority comes from the authorization, not the job title alone.

Watch for this: Representing an owner and having power to bind that owner by signature are different.

Rule: Agency creation and scope; special agency

22

Authority over continuing management

An owner authorizes a manager to collect rent, arrange routine repairs and renew leases within stated limits for an apartment property. Which agency classification best fits this continuing business role?

  1. General agency within the management role
  2. Special agency limited to a single sale
  3. Universal agency over all the owner's affairs
  4. Intermediary agency between every tenant and owner
Check answer and explanation

Correct answer: A. General agency within the management role

A general agent can carry out a range of ongoing acts within an assigned business or role. The manager is still bound by the agreement's limits. This does not grant authority over every aspect of the owner's life or finances.

Watch for this: General authority is broader than one task, but it is not unlimited authority.

Rule: Agency creation and scope; general agency

23

Recognizing an installment land contract

Under a seller-financed agreement, the buyer takes possession and makes installments. The seller retains legal title until the purchase price is paid as agreed. What arrangement is described?

  1. A lease with no promise to convey title
  2. A cash sale with a delayed recording date
  3. A deed conveyed now with a mortgage back
  4. A contract for deed, or installment land contract
Check answer and explanation

Correct answer: D. A contract for deed, or installment land contract

A contract for deed separates installment payments and possession from the later transfer of legal title. This question identifies the arrangement, not the seller's remedies. State protections and restrictions must be checked separately.

Watch for this: Do not assume the seller can keep every payment or remove the buyer immediately after a default.

Rule: Sales contracts; seller financing and installment land contracts

24

Accounting for funds

An agent receives funds connected with a client's transaction. Which action best fulfills the duty of accounting?

  1. Treat the funds as earned compensation on receipt
  2. Document and safeguard the funds as required
  3. Hold the funds personally until the client asks
  4. Use the funds temporarily and replace them later
Check answer and explanation

Correct answer: B. Document and safeguard the funds as required

Accounting includes keeping accurate records and handling entrusted funds according to the agreement and applicable rules. Client funds do not become the agent's money simply because the agent received them.

Watch for this: An intention to replace money later does not make personal use of entrusted funds proper.

Rule: Fiduciary duties; accounting for entrusted funds

25

Reasonable care without guessing

After noticing a foundation crack, a buyer asks the agent whether the home is structurally sound. The agent is not qualified to make that determination. What is the best response?

  1. Give reassurance based on the home's recent paint
  2. Guarantee soundness if the seller says it is safe
  3. Recommend a qualified assessment without guessing
  4. Offer an engineering opinion with a verbal disclaimer
Check answer and explanation

Correct answer: C. Recommend a qualified assessment without guessing

Reasonable care includes recognizing the limits of your expertise. The agent should not invent an engineering conclusion. Directing the buyer to a qualified professional helps the buyer investigate the concern.

Watch for this: A disclaimer does not turn an unsupported technical opinion into reliable advice.

Rule: Fiduciary duties; reasonable care and competence

Optional supplement · Texas-specific applications

10 Texas rules to keep separate.

These examples require Texas form or statutory knowledge. They are not included in the National quiz or its score. If you only need National practice, you can skip to the study resources.

1

No option-fee amount

On TREC Form 20-19, the parties enter seven option days but leave the option-fee amount blank. The buyer tries to use the unrestricted termination option on day four. Which statement is correct?

  1. The seven-day entry alone creates the option
  2. The entire purchase contract becomes void
  3. The buyer keeps the option by forfeiting earnest money
  4. The buyer lacks the unrestricted Paragraph 5 right
Check answer and explanation

Correct answer: D. The buyer lacks the unrestricted Paragraph 5 right

Paragraph 5D removes the unrestricted Paragraph 5 termination right if no option-fee amount is stated. The contract does not become void. Other termination rights may exist if their separate conditions are met.

Watch for this: The day count alone is not enough. Do not turn loss of this option into loss of every possible contractual remedy.

Rule: TREC 20-19, paragraphs 5B and 5D

2

Representing both sides

A Texas broker represents a seller. A buyer now asks that broker to represent the buyer in the same transaction. What must the broker do if agreeing to represent both?

  1. Use ordinary dual agency after oral disclosure
  2. Follow the statutory intermediary requirements
  3. Appoint one agent to advise both parties equally
  4. Treat written consent as optional if fees are disclosed
Check answer and explanation

Correct answer: B. Follow the statutory intermediary requirements

Texas requires the intermediary framework when a broker agrees to represent both parties. This includes each party's written consent and the required compensation-source information. The broker may decline the second representation instead.

Watch for this: Calling the arrangement dual agency does not replace Texas intermediary requirements.

Rule: TRELA 1101.561(b), 1101.559(a)

3

Applying a combined escrow payment

An escrow agent receives less than the combined amounts due under Paragraph 5A of TREC Form 20-19. What allocation order does the form require?

  1. Earnest money, option fee, additional earnest money
  2. Option fee, earnest money, additional earnest money
  3. Additional earnest money, earnest money, option fee
  4. Equal shares to each obligation until funds run out
Check answer and explanation

Correct answer: B. Option fee, earnest money, additional earnest money

Paragraph 5A(3) applies receipts first to the option fee, then earnest money, then additional earnest money. That ordering does not guarantee the entire option fee was paid or that payment was timely.

Watch for this: Allocation order and compliance with amount and deadline requirements are separate checks.

Rule: TREC 20-19, paragraphs 5A(3) and 5D

4

A late earnest-money notice

The earnest-money delivery deadline has expired. The buyer then delivers the funds to escrow before the seller gives notice under Paragraph 5C. Can the seller use that paragraph to terminate for this late delivery?

  1. Yes, any late payment makes termination automatic
  2. Yes, provided closing has not occurred yet
  3. No, the notice had to precede delivery of the funds
  4. No, earnest-money deadlines are never enforceable
Check answer and explanation

Correct answer: C. No, the notice had to precede delivery of the funds

Paragraph 5C requires notice before the buyer delivers the earnest money. In this sequence the funds arrived first, so that late-payment remedy is no longer available. This says nothing about a different breach or separate termination right.

Watch for this: A missed deadline and a timely exercise of a remedy are different facts.

Rule: TREC 20-19, paragraph 5C

5

Who will compensate the intermediary?

Both parties sign intermediary consent, but the consent omits the source of the broker's expected compensation. What is missing?

  1. Notarization of both parties' signatures
  2. An agreement to divide compensation equally
  3. A required statement of the compensation source
  4. A promise that the seller alone will pay the broker
Check answer and explanation

Correct answer: C. A required statement of the compensation source

Section 1101.559(a) requires written consent from each party that states the source of expected compensation. Signatures alone do not supply the omitted information.

Watch for this: The rule requires disclosure of the source, not a particular payer or equal split.

Rule: TRELA 1101.559(a)

6

Permission and appointment notice

The parties authorize intermediary appointments in writing. The broker appoints different agents but never gives the parties written notice of the appointments. What remains required?

  1. A separate brokerage license for each appointed agent
  2. A notarized acceptance from each appointed agent
  3. Written notice of the appointments to all parties
  4. Oral notice only to the party paying the commission
Check answer and explanation

Correct answer: C. Written notice of the appointments to all parties

Authorization and notice are separate requirements under Section 1101.560(b). The broker needs both. A properly appointed license holder may provide opinions and advice to the party they serve within the statutory framework.

Watch for this: Permission to appoint does not tell the parties who was appointed.

Rule: TRELA 1101.560(b), (c)

7

Non-representation showing agreements

An agent who does not represent the seller prepares a non-representation agreement solely to show residential property to a prospective buyer under Section 1101.562. It is exclusive and lasts 30 days. Which correction is required?

  1. Keep exclusivity but shorten the term to 14 days
  2. Make it non-exclusive and no longer than 14 days
  3. Keep the term but replace exclusivity with non-exclusivity
  4. Keep both terms if the buyer separately initials them
Check answer and explanation

Correct answer: B. Make it non-exclusive and no longer than 14 days

Section 1101.563(e) requires this non-representation agreement to be non-exclusive and limits its termination date to 14 days from entry. A representation agreement with limited showing services is different. TREC also distinguishes open houses hosted by the listing brokerage.

Watch for this: Do not apply this 14-day limit to every buyer-representation agreement or claim that every open-house visitor must sign one.

Rule: TRELA 1101.562; 1101.563(b), (e)

8

What IABS actually lists

Which duty is not one of the four duties printed under the broker's minimum duties heading on IABS 1-2, even though it remains an important duty?

  1. Putting the client's interests above the broker's
  2. Informing the client of material information received
  3. Treating all parties to the transaction honestly and fairly
  4. Keeping the client's confidential information private
Check answer and explanation

Correct answer: D. Keeping the client's confidential information private

Confidentiality is not one of the four bullets in that heading. The remaining printed duty concerns answering client questions and presenting offers or counteroffers. The notice is not an exhaustive list of every obligation; confidentiality also has statutory protection in the intermediary setting.

Watch for this: Not printed in this particular list does not mean not required.

Rule: TREC IABS 1-2; TRELA 1101.651(d)

9

The response deadline

A seller's agent receives a transaction-related question from the buyer's agent. Under TREC Rule 535.157, the seller's agent must respond within

  1. two calendar days
  2. two business days
  3. three calendar days
  4. three business days
Check answer and explanation

Correct answer: A. two calendar days

The rule specifies two calendar days. It covers communications from the principal, a license holder representing another party, and an unrepresented party. It is not limited to messages from the agent's own client.

Watch for this: Calendar days and business days are not interchangeable.

Rule: 22 TAC 535.157

10

A written instruction about later offers

A seller agreed in writing that offers need not be submitted after the seller enters a contract. The seller is now under contract and a new offer arrives. Under Rule 535.156, must the agent submit it?

  1. Yes, because the instruction must be renewed for each offer
  2. No, the rule's written-agreement exception applies
  3. Yes, if the new offer contains a larger earnest deposit
  4. No, all later offers are exempt even without instructions
Check answer and explanation

Correct answer: B. No, the rule's written-agreement exception applies

Both conditions are present: the seller's written agreement and an accepted contract. The rule removes the duty to submit later offers in that situation. Without the required written agreement, being under contract alone does not create this exception.

Watch for this: The rule does not prohibit useful advice. It defines when this particular offer-submission duty no longer applies.

Rule: 22 TAC 535.156

One more distinction: seller default is not just a refund.

Paragraph 15 of TREC Form 20-19 gives the buyer alternatives when the seller defaults: seek specific performance or other available legal relief, or terminate and receive the earnest money. The refund is not the buyer's only possible remedy.

Read paragraph 15 in the official form

Know the scope

How this set fits the National outline.

The official topic has 16 scored items. The counts below describe our 25-question sample, not a promise of which questions you will see. The Texas bonus examples are excluded.

Contracts & Agency: official allocation and free practice coverage
National subtopicExam itemsOur questions
Types of contracts12
Required elements of a valid contract35
Contract performance37
Sales contract24
Types of agency and licensee-client relationships22
Creation and termination of agency22
Licensee obligations to parties of a transaction33

A sample is not complete coverage of every possible question. See Pearson VUE's Salesperson outline, section IV. Sources beside each answer explain the underlying principle. Texas-specific rules and examples link to their own authority.

Before choosing an answer, identify the job: forming a contract, performing it, ending it or acting for a client. Then look for the fact that changes the rule, such as a counteroffer, a missed deadline or a limit on the agent's authority.

Use the quiz without notes first. In the explanations, name why your choice worked or failed. A second attempt on these same questions can check your recall, but unfamiliar questions are a better check of whether you can apply the idea.

Choose what to study next.

Start with the lesson behind a missed question, then try another problem without notes.

Before you continue

Are these National questions or Texas State Law questions?

The scored quiz contains 25 National contracts and agency questions. The 10 separately labeled Texas examples cover state forms and rules. They are not part of your National quiz score. General principles may be illustrated with a Texas source, but the National quiz does not ask you to recall Texas-only form numbers or deadlines.

How many contracts and agency questions are on the actual exam?

The published National outline assigns 16 scored items to Contracts and Agency. Our 25-question set samples its seven broad subtopics, not every possible exam question. The Texas State Law portion is scored separately.

Are these actual Pearson VUE questions or a passing-score prediction?

No. These are original practice questions, not released or recalled Pearson VUE items. Their difficulty has not been calibrated against the live exam. Your result describes this set only; it is not a prediction of passing.

Can I keep studying in the web app or on my phone?

Yes. Open the web app or choose the mobile app from the download page. A free account includes selected activities; full access is paid. This website topic-quiz result does not transfer to your account. Practice completed inside the app is saved when you sign in.

Sources and review notes

Reviewed September 6, 2026 for rules effective through September 5, 2026. TREC Form 20-19 took effect July 1, 2026; the cited 2026 buyer-agreement changes took effect January 1. This page is exam preparation, not advice for a transaction.

Use the source beside an answer to check the specific rule. Cornell Law's Wex entries explain general legal concepts; they are not Texas statutes or Pearson VUE answer keys.

How Pass Texas reviews educational content