contingency clause

contingency clause

A clause that allows cancellation of a contract without penalty if a certain described thing happens (e.g., an inspection report reveals necessary repairs estimated to cost in excess of $1,000) or fails to happen (e.g., failure to obtain satisfactory financing). A contingency clause contains a condition for contract performance.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
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If the offer contains a mortgage contingency clause, the buyer has some protection because the lender will insist on an appraisal.
That was why we negotiated a contingency clause. From our point of view, the important thing is to get a firm decision one way or another, but it looks as if we shall have to wait at least another fortnight."
46 creates a situation whereby if the governor attempts to assert his item veto power by challenging the contingency clause and is successful, he will in effect have negated all of the appropriations items in the bill, not just the ones he intended to veto.
Gross includes the warranty clause within the larger category of "contingency clauses." He labels one contingency clause as the "no-contest clause" and distinguishes it from the warranty clause.
Thanks to a mortgage contingency clause, one of her clients backed out of his contract to purchase a new Midtown condo after being offered 60 percent financing, not the 65 percent he'd requested.
While DOD has satisfied the intent of the recommendation by finding a new mission for the base, this BRAC recommendation was unusual because it contained a contingency clause. Therefore, we reviewed DOD's implementation of this recommendation under the authority of the Comptroller General to conduct evaluations on his own initiative.
She offered $155,000 and prudently included a contingency clause in the contract that required the making of any repairs her inspector deemed necessary--a concession more easily obtained in a buyer's market.
Many of the cases dealing with a claim to recover a down payment arise when a buyer attempts to cancel a contract under the mortgage contingency clause because he/she was unable to obtain financing.
(813) The Federal Circuit rejected that argument too, noting that section 4(c) applies only to CBA's entered into "as a result of arm's-length negotiations," (814) and that the DOL had determined that the contingency clause in the new CBA equated to an absence of "arm's-length negotiations." (815) The Federal Circuit did agree, however, that the contractor is entitled to a price adjustment for the second contract extension, because at the time of that extension the erroneous DOL wage determination was in effect.
Financing: A standard financing contingency clause protects you in the event you do not qualify for your financing.
If he's hired, it will be for up to 120 days with a contingency clause to extend that time if needed.
Throughout the process, any written proposal should contain a contingency clause that states the proposal is valid only when the landlord has a signed lease with the new tenant and conversely, has an executed termination agreement with the existing tenant.

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