Case Study Scenario:
Sally, a new salesperson, is explaining the requirements of the purchase contract to her buyers. As she reviews the documents, she explains that all contracts require competent parties, which means the seller or grantor must be competent, but the buyers only need to be identified. The offer must also have a "meeting of the minds" or mutual agreement. She tells the buyers that this means the seller may counter the offer by changing any items he or she doesn't like in the offer while keeping the original offer alive. Sally explains that there must be a consideration, which is the earnest money the buyer pays the seller, and the seller keeps it unless the buyer closes the transaction. Sally also tells the buyers that the contingency deadlines are suggestions for when items have to be completed, but most of the time, as long as the terms are met within a week of the date, there are no issues.
Scenario questions:
A. What is a consideration in a contract if it is not earnest money?
B. Is Sally correct about contingency dates and deadlines? If not, what is correct?