Contracts
A contingency clause in an Arizona purchase contract:
AMakes the contract void from the beginning
BRequires that a specific condition be met for the contract to remain binding✓ Correct
CAutomatically extends the close of escrow by 30 days
DIs prohibited under Arizona real estate law
Explanation
A contingency clause makes the contract conditional on a specific event — such as financing approval or satisfactory inspection. If the condition is not met, the buyer (or seller) may cancel without penalty.
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