Bryan is under contract to purchase a home in Clarksville, Tennessee. His contract contains a financing contingency but no inspection contingency. Before closing, Bryan discovers the property has significant termite damage. Which of the following best describes Bryan's options under Tennessee law?
Correct Answer
B) Bryan has limited contractual options because he did not include an inspection contingency; he may need to proceed with the purchase or negotiate a voluntary amendment with the seller
Because Bryan's contract does not include an inspection contingency, he does not have a contractual right to terminate based on the property's physical condition. His options are limited: he may attempt to negotiate a voluntary amendment with the seller (such as a price reduction or repair credit), or he may proceed with the purchase as-is. If the seller knowingly failed to disclose the termite damage on the Property Condition Disclosure form, Bryan may have a separate legal claim, but this does not automatically give him a right to terminate the contract.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
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