Contracts
What is a material breach of contract under Nevada real estate law?
AAny minor failure to comply with a contract term
BA significant failure to perform a contract obligation that goes to the heart of the contract, allowing the non-breaching party to treat the contract as terminated✓ Correct
CA breach caused by a natural disaster
DA breach requiring mandatory mediation
Explanation
A material breach is a failure to perform a significant contract obligation that substantially impairs the value of the contract to the non-breaching party. It gives the innocent party the right to treat the contract as terminated and seek remedies including damages or specific performance.
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Key Terms to Know
Option Contract
A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
Earnest MoneyA 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.
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