ContractsIntermediateDelaware Exam

Which clause in a Delaware purchase contract allows the buyer to withdraw if they cannot obtain financing?

AEscalation clause
BMortgage contingency clauseCorrect
CTime-is-of-the-essence clause
DHold harmless clause

Why Mortgage contingency clause Is Correct

Answer B: Mortgage contingency clause

A mortgage contingency clause allows the buyer to cancel the contract and recover earnest money if they are unable to secure satisfactory financing within the specified period.

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

People Also Study

Practice More Delaware Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Delaware Quiz →