A Delaware buyer submits an offer with a home inspection contingency. The inspector discovers a cracked foundation. The buyer wants to cancel. What can the buyer do?
Why The buyer may terminate the contract within the contingency period and receive their earnest money deposit back Is Correct
Answer B: The buyer may terminate the contract within the contingency period and receive their earnest money deposit back
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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Key Terms to Know
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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