Question

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standard arbitration clause: any controversy or claim arising out of or relating to this contract, or breach thereof, shall be settled by arbitration in accordance with the construction industry arbitration rules of the american arbitration association. judgment upon the award rendered by the abitrator(s) may be entered in any court.

based on the second paragraph of the agreement, the term contingency most clearly refers to what provision in a contract?

a. an agent’s authority to transfer an agreement
b. a buyer’s probability of mortgage approval
c. a buyer’s right to cancel a contract without penalty
d. a seller’s prevention of unforeseen problems
e. a seller’s compensation for loss suffered

Explanation:

The question is about contract provisions, specifically the term "contingency" in a contract context. Option C describes a buyer's right to cancel a contract without penalty, which aligns with typical contingency provisions (e.g., mortgage or inspection contingencies allowing cancellation if conditions aren't met). Option A is about assignment, B is just a probability (not a contract provision), D is about seller prevention (not a contingency), E is about compensation (not a contingency).

Answer:

C. A buyer’s right to cancel a contract without penalty