A buyer in Danbury, Connecticut is purchasing a home built in 1958 and includes a radon testing contingency in the purchase contract. The radon test reveals levels of 5.2 pCi/L. The EPA action level for radon is 4.0 pCi/L. The buyer invokes the contingency and requests the seller install a radon mitigation system. The seller refuses. What is the buyer's right under the contingency?
Correct Answer
B) The buyer may terminate the contract and recover the earnest money deposit because the radon level exceeds the EPA action level and the contingency was not satisfied
When a radon testing contingency is included in a Connecticut purchase contract and the test results exceed the specified threshold (here, the EPA action level of 4.0 pCi/L), the contingency condition is not satisfied. The buyer has the right to terminate the contract and recover the earnest money deposit. The seller's refusal to install a mitigation system does not eliminate the buyer's right to exit the contract under the contingency — the buyer is not required to accept a credit or proceed with an unsatisfactory result.
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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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