Contracts
In a real estate purchase agreement, a contingency clause:
AGuarantees the transaction will close
BMakes the contract conditional on a specified event occurring✓ Correct
CExtends the closing date automatically
DReleases the seller from disclosure obligations
Explanation
A contingency clause makes the contract conditional on a specified event (such as financing approval, satisfactory inspection, or appraisal). If the contingency is not satisfied, the affected party may be able to cancel without penalty.
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