ContractsIntermediateAlaska Exam

An Alaska seller accepts an offer with the notation 'subject to attorney review.' This means:

AThe contract is fully binding immediately
BEither party's attorney may review and potentially modify or void the contract within a specified review periodCorrect
COnly the buyer's attorney may review the contract
DThe contract automatically terminates after 3 days, which is broadly consistent with standard practice statewide

Why Either party's attorney may review and potentially modify or void the contract within a specified review period Is Correct

Answer B: Either party's attorney may review and potentially modify or void the contract within a specified review period

An attorney review contingency allows designated attorneys to review the contract and propose modifications or cancellation within a specified period. The contract is not fully binding until the review period expires without objection.

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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