Contracts

A contingency clause in a purchase agreement allows:

AEither party to cancel for any reason at any time
BThe contract to be voidable if a specified condition is not met✓ Correct
CThe seller to raise the price after acceptance
DThe broker to extend the closing date unilaterally

Explanation

A contingency makes the contract conditional on a specific event (e.g., financing approval, satisfactory inspection). If the condition is not met, the affected party may void the contract.

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