What happens to a contingency in an Arizona real estate contract if the specified deadline passes without the contingency being satisfied or waived?
Correct Answer
D) The party who benefits from the contingency may cancel the contract
When a contingency deadline passes without satisfaction or waiver, the party who benefits from the contingency (typically the buyer) may cancel the contract. Option A is incorrect as contingencies don't automatically extend. Option B is wrong as the contract doesn't become void. Option C is incorrect as contingencies aren't automatically waived by deadline passage.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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Previous Question
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?
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A Mesa buyer's inspection reveals a cracked foundation requiring $15,000 in repairs. The buyer requests the seller make the repairs, but the seller refuses. The buyer's inspection contingency deadline is tomorrow. What are the buyer's options?