In Scottsdale, a buyer includes a contingency to sell their current home within 45 days. After 30 days with no offers, the seller receives another offer and wants to accept it. What mechanism allows the seller to potentially move forward with the new buyer?
Correct Answer
C) Kick-out clause or right to bump provision
A kick-out clause or right to bump provision allows the seller to give the current buyer notice that they have another offer, requiring the buyer to either remove their contingency or allow contract termination. Option A is incorrect as contracts don't automatically cancel. Option B describes a different type of clause. Option D doesn't exist without specific contractual provisions.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
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While reviewing a transaction in Cochise County, the parties ask whether Arizona contracts can address contingencies beyond inspections, such as HOA review or the buyer's sale of another property. Which outcome best matches current Arizona practice?
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