Contracts for sale may contain sections that cause implementation of the contract to depend on the successful completion of some prior action such as the buyer's ability to obtain financing on specified terms. This type of contract is commonly referred to as a(n):
A) contract assignment
B) equitable title
C) contract with contingencies
D) uniform settlement statement

Question

Quizplus · Accepted Answer

Contracts with contingencies are agreements that contain conditions or requirements that must be satisfied before the contract can be completed. In this scenario, the buyer's ability to obtain financing is a contingency that must be met before the contract is finalized. Option A, contract assignment, refers to transferring a party's rights and obligations to another party. Option B, equitable title, refers to an interest in a property that falls short of legal ownership. Option D, uniform settlement statement, is a document that itemizes all fees and charges associated with a real estate transaction. None of these options accurately describe the situation presented in the question.

Contracts for Sale May Contain Sections That Cause Implementation of the Contract