A purchase and sale agreement is for $150,000, with 80% financing, closing in 30 days with possession at closing, and a rent provision for possession after closing. This is an example of a/an:

• A. Offer with an option
• B. Lease-backed financing
• C. Unenforceable agreement
• D. Contract with contingencies

Answer: (D)

The key idea is a purchase agreement that includes conditions that must be met for the deal to proceed. In this scenario, the buyer is financing 80% and the agreement sets a 30-day close with possession at closing and a rent-back arrangement for after closing. Those terms show the contract is not binding to completion unless certain conditions—like obtaining financing and clearing closing logistics—are satisfied. That’s what a contract with contingencies represents: protections and conditions built into the agreement that govern whether the sale will move forward. It isn’t describing an option to buy, nor a lease-backed financing arrangement, and it isn’t inherently unenforceable.