ContractsContingenciesEASY
An investor has 20 days to study zoning, leases, environmental reports, and operating records before deciding whether to proceed. What contingency best describes this period?
Correct Answer
D) Due-diligence contingency
Due-diligence contingency is correct because the facts match a provision giving a buyer time to investigate matters such as zoning, title, condition, and feasibility before becoming fully obligated. That is the best description of the relationship, right, or legal concept tested here.
Answer Options
A
Mutual releaseB
Financing contingencyC
Earnest money depositD
Due-diligence contingencyWhy 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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Related Topics & Key Terms
Key Terms:
contingenciescontractscontingencydue_diligence
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