Question

The Ahmed family have signed a contract to buy the Miller family's home. However, the contract states the Ahmeds must first close on the sale of their current home within thirty days. If this closing does not occur, the contract is no longer binding for either party. Which contract term applies?

Answer 1

Answer:

The answer is: Terms and conditions

Explanation:

The terms and conditions of a contract identify the rights and responsibilities of both parties involved. They can be very general (i.e. the terms and conditions you accept when using an phone app) or they can be very specific (i.e. price, payment, penalties, etc).

One special condition specific to this contract is that in order for the contract to be binding, one party (Ahmed family) must first sell their current home within thirty days. If this condition is not met within the time frame, then any of the parties involved in the contract can desist or back down from it apparently without any type of penalty.

This doesn´t mean that the sale of the house can not happen if the Ahmed family can´t sell its house fast enough. They can still buy the Miller family´s house at the same conditions or under new terms. The Miller family is free to ask for a new price or any different sale condition if they want.

This type of condition is sometimes used in real state contracts because of the amount of time involved in those types of transactions.