Question

According to North Carolina law, what are the buyer and seller allowed to negotiate after contract formation?

A. The buyer and seller may renegotiate, but only during the due diligence period.
B. Assuming that they are both interested in negotiating, all terms of the contract may be renegotiated during the contractual period.
C. Nothing. The buyer and seller are bound to the terms of the agreed to contract.
D. The buyer and seller may renegotiate, but they will need to create a new contract through novation.

Answer 1

According to North Carolina law, the buyer and seller are allowed to negotiate during the contractual period to modify the terms of the contract. It does not require creating a new contract through novation.

Step-by-step explanation:

According to North Carolina law, after contract formation, the buyer and seller are allowed to negotiate during the contractual period. This means that all terms of the contract may be renegotiated if both parties are interested in doing so.

For example, if the buyer finds issues during the due diligence period and wants to change certain terms of the contract, they can negotiate with the seller to modify those terms.

It's important to note that the renegotiation does not require creating a new contract through novation.