Contracts
A contingency clause in a purchase agreement:
ABinds both parties unconditionally
BMakes the contract conditional upon the occurrence of a specified event✓ Correct
CGuarantees financing for the buyer
DWaives the buyer's inspection rights
Explanation
A contingency clause suspends the binding nature of the contract pending the fulfillment of a specified condition, such as satisfactory inspection, financing approval, or sale of a prior home.
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