Contracts
A contingency clause in a purchase contract:
AMakes the contract binding regardless of outside conditions
BMakes the contract conditional upon a specific event occurring✓ Correct
CExtends the closing date automatically
DRequires the buyer to waive their inspection rights
Explanation
A contingency clause makes the contract conditional upon a specified event, such as financing approval, a satisfactory home inspection, or the sale of the buyer's current home. If the contingency is not satisfied, the contract may be voided.
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