Under the C.A.R. Residential Purchase Agreement, what happens to a buyer's contingencies after their designated time periods expire?
Correct Answer
A) They remain in effect until the buyer submits a signed Contingency Removal (CR) form
The C.A.R. RPA uses an active contingency removal system. Under this system, contingencies do not expire automatically when their time periods pass — they remain in full force until the buyer affirmatively removes them by delivering a signed Contingency Removal (CR) form. This protects buyers from inadvertently losing contingency rights due to a missed deadline and is a defining structural feature of the C.A.R. RPA.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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