A contract condition that states that the agreement is binding only if a certain event occurs is a(n):
A) dual agency.
B) contingency clause.
C) counteroffer.
D) zoning law.
E) prefabrication.

Question

Quizplus · Accepted Answer

A contingency clause is a contractual provision that makes the completion of a contract dependent upon the occurrence of a stated event. It sets out one or more conditions that must be satisfied or waived before the contract can become binding. The most common contingency clauses in real estate contracts are financing, inspection, and appraisal contingencies.

A Contract Condition That States That the Agreement Is Binding