Angela is purchasing a property in Carroll County. Her contract contains a well and septic contingency, which is common for rural Maryland properties. The contingency allows Angela to void the contract if the well water test or septic inspection reveals a material defect. The well water test comes back showing coliform bacteria contamination. Angela notifies the seller within the contingency period. Which of the following best describes Angela's rights?
Correct Answer
B) Angela may void the contract and receive a full refund of her earnest money deposit
A well and septic contingency is a standard protective clause used in Maryland rural property transactions. Coliform bacteria contamination in a well water test constitutes a material defect covered by this contingency. Because Angela identified a qualifying defect and provided timely written notice to the seller within the contingency period, she has the right to void the contract and receive a full refund of her earnest money deposit. This contingency is particularly relevant in rural Maryland counties like Carroll, Frederick, and Washington where public water and sewer are not always available.
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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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