Contracts

An Oregon buyer's purchase offer specifies 'closing on or before July 15.' The seller accepts on July 10. What happens if the parties cannot close by July 15?

AThe contract automatically extends by 15 days
BThe contract terminates automatically unless both parties agree to an extension✓ Correct
COnly the buyer may extend the closing date unilaterally
DOnly the seller may waive the closing deadline

Explanation

When a contract specifies a closing date and neither party has agreed to extend it, the contract may be considered breached if closing does not occur by that date. Both parties must agree in writing to extend the closing deadline.

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