Contracts
A contingency clause in a purchase contract:
ABinds both parties unconditionally to the sale
BMakes the contract void and unenforceable
CMakes the contract conditional upon a specified event occurring✓ Correct
DExtends the closing date indefinitely
Explanation
A contingency clause makes the contract conditional upon a specific event, such as obtaining financing or satisfactory inspection results. If the contingency is not met, either party may cancel without penalty.
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