Contracts

A 'contingency' in an Ohio real estate contract is:

AA binding obligation that must be performed regardless of circumstances
BA condition that must be met before the contract becomes fully binding✓ Correct
CAn optional addendum to the contract
DA clause that automatically extends the closing date

Explanation

A contingency is a condition — if the condition is not met within the specified time, the party protected by the contingency may cancel the contract without penalty and recover their earnest money.

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