ContractsContingenciesMEDIUM
The buyer's lender requires an appraisal, and the contract lets the buyer walk away if the value comes in below the agreed price unless the parties adjust the terms. What contingency is involved?
Correct Answer
D) Appraisal contingency
Appraisal contingency is correct because the facts match a provision allowing cancellation or renegotiation if the property fails to appraise at or above a specified value. That is the best description of the relationship, right, or legal concept tested here.
Answer Options
A
Sale-of-existing-home contingencyB
Due-diligence contingencyC
Mutual releaseD
Appraisal 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:
contingenciescontractscontingencyappraisal
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