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10 Cards in this Set
- Front
- Back
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If a contingency clause benefits both parties to a contract, it: |
When a contingency clause benefits both parties to a contract, the condition can only be removed with the consent of both parties. If the condition isn't satisfied, either party can terminate the contract |
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All of the following are typically found in contingency provisions except: |
Generally, contingency provisions don't require language advising the parties to seek counsel, although obtaining legal advice is often a good idea |
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Which of the following is least likely to be included in a financing contingency provision? |
If the seller is going to provide financing for the buyer, the terms should be set forth in another addendum, and the financing forms that will be used must be attached. (Seller financing is not ordinarily treated as a contingency.) |
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If an inspection reveals building code violations, which of the following is true? |
Either the buyer or the buyer's lender may require repairs based on an inspection report. And if an inspection reveals violations of the building code or other laws, public authorities could order the seller to correct the violations, regardless of whether the sale moves forward |
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An inspection contingency provision will often contain a: |
If the seller makes repairs to address problems revealed by an inspection, the seller typically must allow the property to be reinspected once the repairs have been completed |
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After an inspection, the buyer requests that the seller make certain repairs. Which of the following is not one of the ways in which the seller can respond? |
The inspection contingency is for the benefit of the buyer, so only the buyer has the ability to remove it |
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A sale of buyer's home contingency will usually state: |
A typical sale of buyer's home contingency will include a release clause, which allows the seller to keep her property on the market and consider other offers |
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With a sale of buyer's home contingency, the common approaches to resolving the conflicting needs of the buyer and seller do not include: |
A cancellation agreement terminates a purchase agreement, so it would only be used if the contingency was not filled |
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Which of the following is true of most contingencies? |
Most contingencies benefit the buyer, and the seller wants the contingency to be resolved as soon as possible. the seller doesn't want to take the property off the market for long if the transaction is not certain to go through |
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Which of the following way of including a contingency in a purchase agreement would not be advisable? |
You should never try to draft a contingency clause yourself, since that might be considered the unauthorized practice of law |
