A buyer submits a notice of termination under the financing contingency on the last day of the financing approval period. The seller claims the notice arrived one day late. If the notice was sent by email and the email server log shows it was sent before midnight on the last day, what determines whether the notice was timely?
Correct Answer
B) Whether the notice was received by the seller within the specified period, based on the contract's notice provisions
The timeliness of the notice depends on the contract's notice provisions (Paragraph 21), which generally require delivery (receipt) within the specified timeframe. Whether sending or receipt is the relevant event depends on the contract terms.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
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