ContractsIntermediateDelaware Exam

In Delaware, a 'contingency for sale of buyer's property' in a purchase contract means:

AThe seller must wait indefinitely for the buyer to sell
BThe purchase is conditioned on the buyer closing on the sale of their existing homeCorrect
CThe buyer must sell within 30 days or the contract voids automatically
DThe seller may accept backup offers while this contingency is in place

Why The purchase is conditioned on the buyer closing on the sale of their existing home Is Correct

Answer B: The purchase is conditioned on the buyer closing on the sale of their existing home

A home sale contingency makes the buyer's purchase of the new property contingent on successfully closing the sale of their current home. The contract specifies the time period and conditions for this contingency.

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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