Contracts第 53 / 100 题

A contingency in a real estate contract is:

a.A guarantee that the sale will close
b.A condition that must be met for the contract to proceed or become binding
c.A penalty for late closing
d.The broker's commission clause

解析

A contingency is a condition, such as financing approval or a satisfactory inspection, that must be satisfied for the contract to move forward. If the contingency is not met, the affected party may usually cancel without penalty. Contingencies protect buyers and sometimes sellers from unforeseen problems.

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