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Complete glossary lessonNational exam concept

Contingency

A contingency is a contract condition that makes a party's duty, right to terminate, or obligation to proceed depend on a stated event, standard, deadline, or approval.

Official area

Contracts

Knowledge cluster

Contract performance

Learning sequence

Define, distinguish, apply, retrieve

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Exam purpose

Recognize the rule, then reject the nearest look-alike.

Georgia lens

Apply the state distinction only when the facts call for it.

Connected terms

Connected to 4 terms and one official content area.

What does Contingency mean in real estate?

A contingency is a contract condition that makes a party's duty, right to terminate, or obligation to proceed depend on a stated event, standard, deadline, or approval.

How is Contingency different from the closest exam answer?

A contingency is a specific condition in the contract. A due-diligence period can provide a broader termination right depending on its wording.

What is the Georgia-specific rule?

The signed Georgia contract controls the notice method, deadline, satisfaction standard, waiver, and effect of failure. There is no universal financing or inspection deadline.

Worked exam example

Scenario

A purchase obligation depends on the buyer obtaining a stated loan by a stated date and giving notice in the form the agreement requires.

Decision rule

A contingency is a specific condition in the contract. A due-diligence period can provide a broader termination right depending on its wording.

What is the most common exam trap?

Trap correction

A contingency does not protect a party forever. Missing the notice or deadline can waive the right.

Memory cue: A contingency does not protect a party forever.

Original exam check

Apply the definition

Which statement correctly explains Contingency?

Mastery tracker

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Related terms to learn next

Due-diligence period

A due-diligence period is a negotiated contract window during which a buyer may investigate the property and exercise the termination rights stated in the agreement, often for any reason when the contract grants that broad right.

Option contract

An option contract gives the optionee the right, but not the obligation, to buy or lease property on stated terms within a stated time, in exchange for consideration supporting that promise.

Right of first refusal

A right of first refusal gives its holder the opportunity to match or accept terms the owner is prepared to take from another buyer before the owner sells to that third party.

Executory contract

An executory contract is a valid agreement under which one or more parties still have material performance due, such as a purchase contract between acceptance and closing.

Recommended next complete lesson

Continue with Contracts complete lesson. It places this term inside the full rule, worked examples, exam traps, and mixed practice required for mastery.
Previous termLiquidated damagesNext term Right of first refusal

Contingency quick answers

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Editorial standards.

What is Contingency?

A contingency is a contract condition that makes a party's duty, right to terminate, or obligation to proceed depend on a stated event, standard, deadline, or approval.

What is Contingency commonly confused with?

A contingency is a specific condition in the contract. A due-diligence period can provide a broader termination right depending on its wording.

How does Georgia treat Contingency?

The signed Georgia contract controls the notice method, deadline, satisfaction standard, waiver, and effect of failure. There is no universal financing or inspection deadline.