ContractsDue_diligence_fee_period_and_effective_dateMEDIUM
A firm owner in Cary is revising a training memo on due diligence fee, due diligence period, and Effective Date. Which statement is NOT accurate under current North Carolina law?
Correct Answer
A) The due diligence period is fixed by statute at ten days under current North Carolina rules
This choice is the inaccurate statement. The other three options describe the current North Carolina rule or guidance more accurately.
Answer Options
A
The due diligence period is fixed by statute at ten days under current North Carolina rulesB
The due diligence fee must be made payable and delivered to the seller by Effective Date under the standard form.C
A buyer may generally terminate for any reason or no reason before the end of the due diligence period, but the due diligence fee is still usually retained by the seller.D
If the seller materially breaches the contract or another listed exception applies, the buyer may be entitled to a refund of the due diligence fee.Why This Is the Correct Answer
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Why the Other Options Are Wrong
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Related Topics & Key Terms
Key Terms:
difficulty_3due_diligence_fee_period_and_effective_dateeffective_datenc_contract_practice_offer_to_purchasenc_statenorth_carolinapayable_to_sellerrefundreversescenario_traps_edge_cases_and_enforcementseller_breach_exception
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