Contracts

A Washington purchase agreement has a 10-day inspection contingency. On day 11, the buyer attempts to rescind based on the inspection. The seller may:

AAgree to the rescission voluntarily but is not required to return earnest money
BRefuse rescission because the contingency period has expired and enforce the contract✓ Correct
CBe required to extend the contingency by state law
DOnly renegotiate the price

Explanation

If the buyer fails to exercise a contingency within the specified period, the contingency expires. The seller may hold the buyer to the contract (or claim the earnest money as liquidated damages), as the buyer's right to rescind has lapsed.

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