Contracts
A contingency clause in a purchase contract:
AMakes the contract void from the beginning
BMakes the contract binding only when a specified condition is met or waived✓ Correct
CExtends the closing date automatically by 30 days
DRequires the seller to make repairs before closing
Explanation
A contingency clause makes the buyer's obligation to purchase (or the entire contract) conditional on the occurrence or satisfaction of a specified condition, such as mortgage approval, satisfactory inspection, or sale of the buyer's current home. If the contingency is not met and not waived, the contract typically terminates.
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