Contracts
A Florida buyer's purchase contract includes a 'due diligence period' or 'inspection contingency.' The buyer decides to cancel within this period. The buyer is:
AIn breach of contract and forfeits the deposit
BEntitled to a full refund of the deposit as they exercised their contractual right to cancel✓ Correct
CRequired to purchase the property regardless
DOnly allowed to cancel if a major defect is found
Explanation
If the contract includes a due diligence or inspection contingency and the buyer cancels within the specified period, the buyer is entitled to a full refund of the deposit — no reason need be given as the cancellation is a contractual right.
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