Contracts

A Massachusetts buyer backs out of a P&S because they are dissatisfied with the home inspection. The inspection contingency allows the buyer to back out for 'any reason.' The seller:

ACan sue for breach of contract
BMust return the deposit under the contract's contingency terms✓ Correct
CCan retain the deposit
DCan force the buyer to complete the purchase

Explanation

If the inspection contingency broadly allows the buyer to back out for 'any reason' within the contingency period, exercising that right entitles the buyer to a full deposit refund—the seller has no right to retain it.

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