Question

Which of the following is FALSE about contingencies?

A)
They create a contract that is unenforceable.
B)
They must identify who will pay for any costs involved.
C)
They must specify what is required to satisfy the contingency.
D)
Common contingencies include mortgage and inspection contingencies.

Answer 1

The false statement about contingencies is that they create a contract that is unenforceable. Contingencies are conditions in a contract that must be satisfied for the contract to proceed.

Step-by-step explanation:

The false statement about contingencies is that they create a contract that is unenforceable. Contingencies are conditions in a contract that must be satisfied for the contract to proceed. They are included to protect the parties involved and provide an opportunity to back out if the conditions are not met. Examples of common contingencies are mortgage and inspection contingencies. Contingencies must identify who will pay for any costs involved and specify what is required to satisfy the contingency.