ContractsContingenciesEASY
A purchase agreement allows the buyer to cancel if a loan on stated terms cannot be obtained despite good-faith effort. What contingency is this?
Correct Answer
A) Financing contingency
Financing contingency is correct because the facts match a contract provision making the buyer's obligation contingent on obtaining the specified financing. That is the best description of the relationship, right, or legal concept tested here.
Answer Options
A
Financing contingencyB
Inspection contingencyC
Appraisal contingencyD
Sale-of-existing-home 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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Common Mistakes to Avoid on Contracts Questions
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Related Topics & Key Terms
Key Terms:
contingenciescontractscontingencyfinancing
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