ContractsIntermediateAlaska Exam

An Alaska buyer's financing contingency expires. The buyer has not yet received loan approval. Without a written extension, the financing contingency is:

AAutomatically extended by 7 days
BWaived — the buyer must proceed or be in defaultCorrect
CConverted to a cash purchase requirement
DSubject to arbitration to determine outcome, in general

Why Waived — the buyer must proceed or be in default Is Correct

Answer B: Waived — the buyer must proceed or be in default

If a contingency deadline passes without being exercised, the contingency is typically deemed waived. The buyer must then proceed with the purchase or be in default — unless both parties agree in writing to extend the deadline before it expires.

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

People Also Study

Practice More Alaska Real Estate Questions

1,400+ questions covering all exam topics. Start free — no signup required.

Take the Free Alaska Quiz →