ContractsPregunta 54 de 120
A contingency in a purchase contract, such as a financing or inspection contingency, functions to:
a.Automatically increase the purchase price
b.Allow a party to cancel or renegotiate if a specified condition is not met
c.Transfer title before closing
d.Waive the buyer's right to inspect
Explicación
A contingency is a condition that must be satisfied for the contract to proceed, and it protects a party by allowing cancellation or renegotiation if the condition fails. Common examples include financing, appraisal, and inspection contingencies. If a contingency is not met, the protected party may usually withdraw without penalty.
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