Check Your Understanding Answers
- What are contingencies?
Contingencies are conditions that must be met in order for a contract to be performed.
- What must parties to a contract do when a contingency is removed or satisfied?
The parties are required to perform according to the contract terms or be in breach of contract.
- List the four questions licensees should ask themselves to clearly understand a contingency?
- Who is required to act?
- What should be done
- When must it be done?
- How is the contingency removed or satisfied?
- What does California law require the parties of a contract to do in order to fulfill a contingency.
California law requires all parties to a contract to use reasonable due diligence to fulfill a contingency requirement.
