ContractsContingenciesEASY
A buyer's financing contingency requires loan approval within 30 days. On day 25, the lender denies the loan. What right does the financing contingency give the buyer?
Correct Answer
D) The right to terminate the contract and receive a refund of earnest money
A financing contingency allows the buyer to cancel and recover earnest money if the specified financing cannot be obtained despite good-faith effort.
Answer Options
A
The right to switch to a different propertyB
The right to force the seller to lower the priceC
The right to extend the closing by six monthsD
The right to terminate the contract and receive a refund of earnest moneyWhy 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:
contingenciescontractsfinancingtermination_right
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