Under the TREC contract, the Addendum for Sale of Other Property by Buyer requires the seller to give the first buyer notice when the seller receives another acceptable offer. This notice triggers:
Correct Answer
C) A specified period for the first buyer to waive the contingency or the contract terminates
The notice triggers a specified period (often 3 days) during which the first buyer must either waive the sale contingency and proceed without it, or the contract terminates and the seller can proceed with the new offer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
More Promulgated Contract Forms Questions
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