A buyer's offer on a BC resale home includes a financing subject that must be waived or declared fulfilled by written notice by 5:00 PM on Friday. The buyer's lender confirms approval at 6:30 PM that day, and no notice was given before the deadline. Under the BC standard Contract of Purchase and Sale, what is the status of the contract?
Correct Answer
B) The subject was not removed in time, so the contract has ended
Under the BC standard Contract of Purchase and Sale, a subject that is not waived or declared fulfilled by written notice by its deadline ends the contract, and the deposit is returned to the buyer. Failing to satisfy a condition precedent is not a breach, so the buyer is not liable; but the seller is also free to walk away or to negotiate a new agreement.
Why This Is the Correct Answer
This answer is correct. The subject was not waived or declared fulfilled by written notice before 5:00 PM on Friday, so under the standard form the contract ended at the deadline and the deposit is returnable to the buyer. Approval at 6:30 PM came too late to keep the contract alive.
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