ContractsContingenciesMEDIUM
After a property inspection reveals minor cosmetic issues, the buyer demands $20,000 in credits. The seller refuses, and the inspection contingency deadline passes without the buyer formally canceling. What is the likely result?
Correct Answer
C) The buyer has likely waived the inspection contingency and is bound to proceed
In many contracts, if the buyer does not formally exercise the right to cancel before the contingency deadline passes, the contingency is waived and the buyer is bound to proceed.
Answer Options
A
The contract automatically terminatesB
The buyer retains the right to cancel indefinitelyC
The buyer has likely waived the inspection contingency and is bound to proceedD
The seller must pay the creditsWhy This Is the Correct Answer
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Deep Analysis of This Contracts Question
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Background Knowledge for Contracts
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Related Topics & Key Terms
Key Terms:
contingenciescontractsinspectionwaiver
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