Contracts

A 'contingency' in a Florida real estate contract means that:

AThe contract is automatically void
BThe contract is conditioned upon a future event occurring; if not, a party may cancel✓ Correct
CBoth parties are bound regardless of future circumstances
DThe closing date is flexible

Explanation

A contingency is a condition that must be satisfied for the contract to proceed. Common contingencies include financing, inspection, and appraisal. If the contingency is not met, the protected party may cancel the contract.

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