Contracts
In Texas, a real estate contract that contains an illegal provision is:
AVoid in its entirety regardless of the illegal provision
BPotentially voidable, with the illegal provision severable if it does not affect the core agreement✓ Correct
CAutomatically ratified by TREC
DUnenforceable only by the party who drafted it
Explanation
Under Texas contract law, if an illegal provision is severable from the rest of the contract (meaning the contract can still operate without it), a court may strike the illegal term and enforce the remainder. If the illegal provision is central to the agreement, the entire contract may be void.
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