Contracts
A Tennessee sales contract requires the buyer to obtain 'satisfactory' financing. This type of contingency is considered:
AHighly specific and enforceable as written
BPotentially problematic — subjective terms may make the contingency unenforceable✓ Correct
CStandard language that automatically extends for 60 days
DAn enforceable waiver of the buyer's appraisal rights
Explanation
Vague or subjective contingency language (like 'satisfactory financing') can create disputes. Tennessee courts may find such language unenforceable if it gives a party unlimited discretion to avoid performance.
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