Contracts
In Montana, a 'force majeure' clause in a commercial real estate contract may excuse performance when:
AA party simply changes their mind about the deal
BAn extraordinary event beyond the parties' control (natural disaster, pandemic, government action) prevents performance✓ Correct
CA party cannot obtain financing at their desired rate
DConstruction costs exceed estimates
Explanation
Force majeure (act of God) clauses excuse performance when extraordinary events outside either party's control—floods, earthquakes, pandemics, government restrictions—prevent a party from performing. The clause must specifically describe the qualifying events.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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