ContractsDue_diligence_fee_period_and_effective_dateMEDIUM
A firm owner in Apex is answering a client question about due diligence fee, due diligence period, and Effective Date. Which statement best applies under current North Carolina law?
Correct Answer
D) 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.
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.
Answer Options
A
A buyer must prove a material defect to terminate during the due diligence period under current North Carolina rulesB
The seller must agree to all requested repairs if the buyer is still in due diligence.C
Termination during due diligence automatically refunds the due diligence fee under current North Carolina rulesD
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.Why This Is the Correct Answer
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Related Topics & Key Terms
Key Terms:
difficulty_3due_diligence_fee_period_and_effective_datedue_diligence_periodnc_contract_practice_offer_to_purchasenc_statenonrefundablenorth_carolinascenario_traps_edge_cases_and_enforcementtermination
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