A Peoria buyer's financing contingency expires on Friday at 5:00 PM, but their loan approval letter arrives at 5:30 PM the same day. In Arizona, what is the status of this contingency?
Correct Answer
B) The contingency has expired and the buyer may be in breach of contract
In Arizona, contingency deadlines are strictly enforced, and receiving approval 30 minutes after the 5:00 PM deadline means the contingency has expired, potentially putting the buyer in breach. Option A is incorrect as same-day receipt after deadline doesn't satisfy the contingency. Option C is incorrect as Arizona doesn't have a general reasonable delay provision for contingencies. Option D is incorrect as contingencies don't automatically extend.
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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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