Contracts
In New York, a 'contingency' in a purchase contract serves to:
AMake the contract unconditional
BMake the contract conditional upon the occurrence of a specific event, allowing cancellation if the condition is not met✓ Correct
CGuarantee the seller will complete the sale
DSet the closing date
Explanation
A contingency is a condition that must be satisfied for the contract to become fully binding. Common contingencies include financing, home inspection, and sale of the buyer's existing home. If a contingency is not satisfied, the affected party may cancel the contract.
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