A buyer in Phoenix submits an offer with an inspection contingency that allows 10 days for completion. The seller accepts the offer on Monday, March 1st. By what date must the buyer complete their inspection to satisfy the contingency?
Correct Answer
A) Thursday, March 11th
In Arizona, contingency periods are calculated using calendar days, and the acceptance date is not counted. Starting March 2nd, the 10th day falls on March 11th. Option B is incorrect as it adds an extra day. Option C is incorrect as it miscounts by two days. Option D is incorrect as it miscounts by three days.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
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