A buyer's offer contains a financing condition to be fulfilled or waived within five business days after acceptance. The seller accepts on a Tuesday, and there are no holidays that week or the next. Counting from the day after acceptance, what is the last day to fulfill or waive the condition?
Correct Answer
C) The following Tuesday
Business days exclude weekends and holidays. Counting from the day after acceptance: Wednesday (1), Thursday (2), Friday (3), Monday (4) and Tuesday (5), so the deadline falls on the following Tuesday at the time stated in the clause.
Why This Is the Correct Answer
Starting the day after the Tuesday acceptance, the five business days are Wednesday, Thursday, Friday, Monday and Tuesday. Saturday and Sunday are skipped. The fifth business day is therefore the following Tuesday, and notice must be delivered by the time stated in the condition on that day.
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A buyer submits an offer with a condition for financing approval within 5 business days. What happens if the buyer cannot secure financing by the deadline?