Contracts
A contingency clause in a purchase contract:
AMakes the contract void immediately
BMakes the contract performance dependent on a specified condition being met✓ Correct
CRemoves the seller's right to negotiate
DGuarantees the buyer a lower price
Explanation
A contingency makes the buyer's obligation to purchase (or the seller's obligation to sell) dependent on the occurrence of a specified condition, such as securing financing, a satisfactory inspection, or sale of the buyer's current home.
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