Question

A buyer and seller agree that the sale will be contingent on the buyer obtaining financing. The buyer later decides she doesn't want the property, so she doesn't bother to fill out any loan applications. The contingency is dropped from the agreement because:

Answer 1

the buyer did not make a reasonable, good faith effort to fulfill the contingency.

Step-by-step explanation:

When a contract is formed a contingency clause requires a particular action to take place in order for the agreement to be valid.

If the condition is not met them the agreement is invalid.

For example is a sales agreement is contingent on a seller providing delivery services and this is not done, the buyer is released from his obligation of making the purchase.

So in this case if the sale is contingent on the buyer obtaining financing and he does not make an effort to obtain a loan.

The contingency can be dropped because the buyer did not make a reasonable, good faith effort to fulfill the contingency.