What happens when a condition in an Agreement of Purchase and Sale is not fulfilled by the specified deadline?
Correct Answer
A) The contract becomes null and void unless the condition is waived
When a condition is not satisfied by its deadline, the contract typically becomes null and void, allowing the party for whose benefit the condition was included to withdraw without penalty. However, the benefiting party may choose to waive the unfulfilled condition and proceed with the transaction.
Why This Is the Correct Answer
Option A correctly states that when a condition isn't fulfilled by its deadline, the contract becomes null and void unless waived. This reflects the fundamental principle in Canadian real estate law that conditions are escape clauses for the benefiting party. Provincial legislation and standard form agreements support this interpretation, giving the party for whose benefit the condition exists the choice to either terminate the contract without penalty or waive the unfulfilled condition and proceed with the transaction.
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