Contracts
A contingency clause in a purchase agreement:
AMakes the contract immediately binding upon signing
BConditions the contract on a specific event occurring, such as financing approval✓ Correct
CAllows the seller to withdraw from the contract at any time
DWaives the buyer's right to a home inspection
Explanation
A contingency clause makes the contract conditional upon a specified event, such as the buyer obtaining mortgage financing, a satisfactory home inspection, or the sale of the buyer's current home. If the condition is not met, the contract may be voided.
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