ContractsIntermediateCalifornia Exam

A California residential purchase agreement includes a 17-day inspection contingency. On day 18, the buyer has not removed the contingency or canceled. What is the correct procedure for the seller?

AThe seller may immediately keep the buyer's deposit, per standard contingency and disclosure practice
BThe seller may issue a Notice to Buyer to Perform, giving the buyer at least 2 days to remove the contingency or cancelCorrect
CThe contract automatically cancels on day 18, under standard California purchase contract terms
DThe seller must extend the contingency for another 17 days, as typically drafted in a residential purchase agreement

Why The seller may issue a Notice to Buyer to Perform, giving the buyer at least 2 days to remove the contingency or cancel Is Correct

Answer B: The seller may issue a Notice to Buyer to Perform, giving the buyer at least 2 days to remove the contingency or cancel

Under the C.A.

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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