After signing a California RPA, a buyer discovers that the seller's agent failed to disclose a known structural issue. The buyer wants to pursue remedies. Under the standard California RPA, what must the buyer do BEFORE filing an arbitration claim?
Correct Answer
D) Attempt mediation with the other party as required by the RPA
The standard California RPA requires that parties attempt mediation before proceeding to arbitration or litigation. This mediation-first requirement is a contractual prerequisite, and failure to comply can result in the loss of the right to recover attorney's fees even if the complaining party prevails.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
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