Contracts
In Minnesota, a purchase agreement is typically considered 'executory' until closing because:
AIt can be revoked by either party at any time
BThe contract obligations have not yet been fully performed—title has not transferred and full payment has not been made✓ Correct
CIt requires court approval to become final
DIt is not binding until the lender approves the loan
Explanation
A contract is executory when its obligations have been agreed to but not yet fully performed. A real estate purchase agreement in Minnesota is executory from signing until closing—the seller has not yet transferred title, and the buyer has not yet paid the full purchase price. At closing, the contract is executed (performed).
Related Minnesota Contracts Questions
- In Minnesota real estate, which party typically prepares the purchase agreement?
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- In Minnesota, what is the effect of the integration clause (entire agreement clause) in a purchase agreement?
- In Minnesota, a buyer's inspection contingency typically allows the buyer to:
- Under Minnesota contract law, an offer becomes a binding contract when:
- In Minnesota, which of the following is an essential element of a valid real estate purchase agreement?
- Under the Minnesota purchase agreement, earnest money is typically held by:
- A Minnesota purchase agreement that is 'voidable' means:
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