A purchase agreement for a Grand Forks, North Dakota property includes a contingency stating that the contract is conditioned upon the buyer obtaining financing within 21 days. The 21-day period expires and the buyer has not obtained financing but also has not notified the seller. Under North Dakota contract principles, what is the most accurate description of the contract's status?

Correct Answer

C) The contract becomes voidable at the seller's option upon expiration of the contingency period

When a contingency period expires without satisfaction or waiver and without notice from the buyer, the contract does not automatically terminate by operation of law in all circumstances. Rather, the seller gains the right to treat the contract as voidable — meaning the seller may elect to terminate or may choose to extend time. The contingency is for the buyer's benefit, and its failure gives the seller the option to act, making the contract voidable at the seller's election. This reflects standard North Dakota contract application and the practical operation of contingency clauses in purchase agreements.