A buyer submits an offer on a Florida property with a contingency that they must sell their current home within 60 days. The seller accepts but includes a 72-hour kick-out clause. After 30 days, another buyer makes a non-contingent offer. What must happen next according to Florida contract law?
Correct Answer
B) The seller must notify the first buyer, who has 72 hours to remove the contingency or lose the contract
Correct: B - With a 72-hour kick-out clause, the seller must notify the first buyer of the new offer, giving them 72 hours to remove their sale contingency or the contract can be terminated. Why not A: The first buyer doesn't automatically lose rights; they must be given notice and opportunity to remove the contingency. Why not C: The kick-out clause specifically allows for this situation. Why not D: Only one contract can be primary; the kick-out clause prevents simultaneous contracts.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
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.
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