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?
Correct Answer
B) Yes, the buyer may decline to waive it if acting honestly and in good faith
A condition requiring the inspection to be satisfactory to the buyer in the buyer's sole discretion leaves the decision to the buyer, so the buyer may decline to waive it even over minor findings. Canadian contract law still requires contractual discretion to be exercised honestly and in good faith, so the buyer's dissatisfaction must be genuine rather than a pretext; here the buyer honestly reviewed the report and is not satisfied.
Why This Is the Correct Answer
The condition gives the buyer sole discretion over whether the inspection is satisfactory, so the buyer may decline to waive it whatever the findings, as long as the decision is honest and made in good faith. The stem says the buyer honestly reviewed the report and is not satisfied, so the buyer can end the contract under the condition.
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