Contracts
Which of the following is an example of a 'subject to' clause in a real estate contract?
A'This offer is subject to AREC approval.'
B'This contract is subject to the buyer obtaining financing of $200,000 at 7% or better within 30 days.'✓ Correct
C'This contract is subject to the seller's discretion on repair items.'
D'This offer is subject to the buyer's attorney review only.'
Explanation
A 'subject to' clause is a contingency. It makes the contract binding but conditional upon a specified event (obtaining financing, satisfactory inspection). If the condition is not met, the party the contingency protects may terminate.
Related Arkansas Contracts Questions
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