Contingent Contract With Example In Massachusetts
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A contingent contract is a legal agreement in which the terms and conditions only apply or take effect if a specific event occurs. Essentially, the parties involved agree to perform actions or obligations based on the occurrence or non-occurrence of a particular event in the future.
The most common contingency is the home inspection contingency. This condition on an offer states the home sale will only be finalized if the property passes a professional home inspection. In other words, buyers can walk away from a home sale if the home inspection turns up serious problems.
In real estate, “contingent” refers to a status in which a Massachusetts property is under contract for sale. Still, certain conditions or contingencies must be met before the sale is finalized. These conditions commonly include inspections, financing, appraisal, or selling another property.
Your parents might have had one more child than they actually did, and so you could have had another sibling. This sibling that does not exist but could have is also considered a contingent thing. Contingent things are often contrasted with necessary things.
With a contingent offer, you have stated that a certain condition must be met before the sale moves forward. If it doesn't, the contract is void, and the seller can move on to a backup offer received while the sale was contingent.
An example of a contingent liability that a company should record is possible product warranty costs. This refers to the potential expense a company may incur if they need to repair or replace a product that is covered under warranty. Another example is the threat of a lawsuit by a competitor.
In real estate, “contingent” refers to a status in which a Massachusetts property is under contract for sale. Still, certain conditions or contingencies must be met before the sale is finalized. These conditions commonly include inspections, financing, appraisal, or selling another property.
When an event or situation is contingent, it means that it depends on some other event or fact. For example, sometimes buying a new house has to be contingent upon someone else buying your old house first.
