Sarah and David are purchasing a home in East Providence, Rhode Island. Their purchase and sale agreement contains a home inspection contingency allowing them to request repairs or void the contract within 10 days of the inspection. The inspector finds a cracked foundation. On day 8, Sarah and David submit a written repair request. The seller refuses all repairs. Sarah and David then attempt to void the contract on day 12, two days after the contingency expired. Under Rhode Island contract law, what is the most likely outcome?
Correct Answer
D) Sarah and David have waived their right to void the contract by failing to act within the 10-day contingency period
Under Rhode Island contract law, contingency deadlines are strictly enforced. When Sarah and David failed to void the contract within the 10-day inspection contingency period — even though they submitted a repair request on day 8 — they did not exercise their right to void within the specified timeframe. The seller's refusal to repair does not automatically extend the contingency period. By waiting until day 12 to attempt to void, Sarah and David have waived their contingency rights, and the contract remains binding.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
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