ContractsIntermediateDelaware Exam
What is a 'kick-out clause' in a Delaware real estate contract?
AA provision allowing the seller to terminate the contract if a better offer arrives
BA provision allowing the seller to accept a better offer while notifying the contingent buyer to waive or matchCorrect
CA provision allowing the buyer to exit the contract without penalty
DA provision requiring the removal of personal property before closing
Why A provision allowing the seller to accept a better offer while notifying the contingent buyer to waive or match Is Correct
Answer B: A provision allowing the seller to accept a better offer while notifying the contingent buyer to waive or match
A kick-out clause (right of first refusal trigger) allows the seller to continue marketing the property and, if a better offer is received, to notify the original buyer, who then has a limited time to waive the contingency or be 'kicked out' of the contract.
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.
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