In an Alberta purchase contract, what is a 'condition' (also called a 'subject clause')?
Correct Answer
D) A clause that must be satisfied or waived before the contract is firm
A condition (subject clause) in an Alberta purchase contract is a requirement that must be fulfilled or waived within a specified timeframe. Common conditions include financing approval, home inspection, and review of condominium documents. Until conditions are satisfied or waived, the contract is not firm and binding.
Why This Is the Correct Answer
A condition (subject clause) in an Alberta purchase contract is a contingency that must be fulfilled or waived within a specified timeframe for the contract to become firm and binding. Common conditions include financing approval, satisfactory home inspection, and review of condominium documents. Until all conditions are resolved, the contract remains conditional.
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Previous Question
In an Alberta purchase contract, the completion day is set for a Friday, but the buyer's mortgage funds are delayed and will not be available until Monday. What are the legal consequences?
Next Question
In an Alberta purchase, the buyer's offer is conditional on a home inspection satisfactory to the buyer in the buyer's sole discretion. The inspection finds only minor cosmetic issues, but after honestly reviewing the report the buyer is not satisfied. Can the buyer decline to waive the condition and end the contract?