Contracts
A contingency clause in a purchase agreement protects the buyer by:
AGuaranteeing the seller cannot back out
BAllowing the buyer to cancel under specified conditions without losing the deposit✓ Correct
CEnsuring the property appraises at value
DRequiring the seller to make all repairs
Explanation
A contingency clause makes the buyer's obligation to purchase conditional on a specific event (e.g., loan approval, satisfactory inspection). If the condition is not met, the buyer can cancel and recover their deposit.
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