A Tennessee buyer, Kevin, has a home inspection contingency in his purchase contract. After the inspection reveals a cracked foundation, Kevin sends a written notice to the seller requesting repairs. The seller refuses. Kevin then sends a notice purporting to terminate the contract under the inspection contingency. The seller argues that Kevin waived the contingency by not following the exact procedure outlined in the contract. Under Tennessee contract law, what is the most important factor a court would examine?
Correct Answer
A) Whether Kevin strictly complied with the termination procedures and deadlines specified in the contract
Under Tennessee contract law, contingency clauses must be exercised in strict accordance with their terms, including specified procedures and deadlines. If Kevin failed to follow the exact termination procedure outlined in the contract — such as submitting notice within a required timeframe or using a specified form — a court would likely find that he waived the contingency and remains bound by the contract. Strict compliance with contractual conditions is a fundamental principle in Tennessee.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
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.
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