Contracts

A Mississippi buyer's financing contingency states 'buyer shall make good faith application for a mortgage loan within 5 business days.' The buyer applies on day 6. The seller may:

ADo nothing since one day is not material
BPotentially declare the buyer in default for failing to meet a contractual deadline, depending on whether the requirement was a condition precedent✓ Correct
CAutomatically extend the financing period by 5 days
DSue for specific performance immediately

Explanation

Contract deadlines are generally enforceable. Failing to apply for financing within the contractually specified 5-business-day period may constitute a breach of the buyer's contractual obligation.

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