Contracts
An Alabama purchase contract that is contingent upon the buyer obtaining financing is considered:
AInvalid until the contingency is removed
BBinding on both parties but subject to the contingency — the contract may be voided by the buyer if financing cannot be obtained✓ Correct
COnly binding on the seller
DVoid because uncertain contracts cannot be enforced
Explanation
A contract with a financing contingency is binding on both parties but allows the buyer to terminate the contract (and recover earnest money) if they are unable to obtain the specified financing.
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