ContractsIntermediateCalifornia Exam

Which clause in a purchase agreement requires the buyer to notify the seller of any issues discovered during inspection, or lose the right to object?

AAs-is clause, per standard contingency and disclosure practice
BTime is of the essence clause, under standard California purchase contract terms
CNotice and right to cure provision within the inspection contingencyCorrect
DLiquidated damages clause, as typically drafted in a residential purchase agreement

Why Notice and right to cure provision within the inspection contingency Is Correct

Answer C: Notice and right to cure provision within the inspection contingency

The inspection contingency in California's standard purchase agreement typically requires the buyer to investigate and notify the seller of objections by a specified date. If the buyer fails to do so or remove the contingency, their right to object may be waived.

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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