Contracts (alternative)
A Maryland real estate contract provision that says the buyer's obligation is contingent on obtaining financing at no more than 6% interest is a:
APerformance clause
BCondition precedent (financing contingency)✓ Correct
CLiquidated damages clause
DOption to purchase
Explanation
A financing contingency is a condition precedent—the buyer's obligation to close depends on satisfying the condition (obtaining financing at acceptable terms). If the condition is not met, the buyer may be released from the contract.
Related Maryland Contracts (alternative) Questions
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