ContractsIntermediateAlaska Exam

A buyer in Alaska submits an offer that the seller accepts. Before closing, a natural disaster destroys the property. Under most Alaska purchase agreements, this is:

AThe buyer's risk; the contract must be honored
BThe seller's risk; the contract may be voidable by the buyerCorrect
CA situation covered by the seller's homeowner's insurance only
DGrounds for the broker to retain the earnest money

Why The seller's risk; the contract may be voidable by the buyer Is Correct

Answer B: The seller's risk; the contract may be voidable by the buyer

Most Alaska purchase agreements follow the Uniform Vendor and Purchaser Risk Act concept: if a material part of the property is destroyed before closing through no fault of either party, the buyer may void the contract and recover earnest money.

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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