Contracts
What is a 'force majeure' clause in a Rhode Island real estate contract?
AA clause requiring the seller to make major repairs
BA clause excusing performance when extraordinary events (natural disasters, government actions) outside the parties' control make performance impossible or impractical✓ Correct
CA clause forcing the buyer to close on a specific date
DA clause for force majeure government sales
Explanation
A force majeure clause excuses a party's performance when extraordinary, unforeseeable events (floods, pandemics, government orders) beyond their control make performance impossible or impractical. The COVID-19 pandemic highlighted the importance of such clauses.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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