Contracts

A contingency in a purchase agreement:

AMakes the contract void immediately
BMakes the contract voidable by the seller only
CConditions the contract on a specified event occurring, allowing the buyer to exit if the condition is not met✓ Correct
DRequires the seller to lower their price

Explanation

A contingency is a condition that must be satisfied for the contract to proceed. Common contingencies include financing, inspection, and appraisal contingencies. If a contingency is not met, the buyer may be entitled to exit the contract and recover their earnest money.

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