Karen is buying a home in Fort Wayne, Indiana. Her purchase agreement includes a home inspection contingency requiring the buyer to notify the seller of any objections within 10 days of the effective date. Karen's inspector finds significant HVAC issues, but Karen forgets to notify the seller within the 10-day period. What is the most likely legal consequence under Indiana contract law?
Correct Answer
A) Karen has waived the inspection contingency and is likely bound to proceed with the purchase
Under Indiana contract law, when a buyer fails to timely exercise a contingency within the specified deadline, the contingency is generally deemed waived. By not notifying the seller of inspection objections within the 10-day window, Karen has likely waived her right to object under the inspection contingency and is bound to proceed with the purchase on the agreed terms.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
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