ContractsContingenciesEASY
Drew Khan agrees to purchase the new home only if Drew Khan's current residence sells by a stated date. What type of contingency is this?
Correct Answer
B) Sale-of-existing-home contingency
Sale-of-existing-home contingency is correct because the facts match a provision making the purchase dependent on the buyer first selling another property. That is the best description of the relationship, right, or legal concept tested here.
Answer Options
A
Due-diligence contingencyB
Sale-of-existing-home contingencyC
Mutual releaseD
Earnest money depositWhy This Is the Correct Answer
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Why the Other Options Are Wrong
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Deep Analysis of This Contracts Question
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Background Knowledge for Contracts
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Real World Application in Contracts
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Common Mistakes to Avoid on Contracts Questions
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Related Topics & Key Terms
Key Terms:
contingenciescontractscontingencysale_of_home
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