ContractsIntermediateAlabama Exam

An Alabama purchase contract's inspection contingency typically gives the buyer the right to:

ACancel the contract for any reason
BHave the property inspected and negotiate repairs or cancel the contract based on inspection resultsCorrect
CDemand that the seller make all repairs identified, though outcomes can differ depending on circumstances
DExtend the closing date by 60 days

Why Have the property inspected and negotiate repairs or cancel the contract based on inspection results Is Correct

Answer B: Have the property inspected and negotiate repairs or cancel the contract based on inspection results

An inspection contingency allows the buyer to have professional inspections performed and, depending on results, to negotiate repairs with the seller or cancel the contract.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

Key Contracts Terms in This Question

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