ContractsIntermediateDelaware Exam
A contingency clause in a Delaware purchase agreement allows:
AEither party to withdraw for any reason
BThe contract to be voided if a specified condition is not metCorrect
CThe seller to accept backup offers
DThe broker to extend the closing date unilaterally
Why The contract to be voided if a specified condition is not met Is Correct
Answer B: The contract to be voided if a specified condition is not met
A contingency clause makes the contract conditional upon a specified event or condition (such as financing approval or satisfactory inspection). If the condition is not met, the contract may be voided.
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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