An offer to purchase includes a promise to deposit earnest money within two business days after mutual acceptance, contingent on a soil feasibility report. If the seller accepts on May 5, by what date must the earnest money be deposited?

• A. May 9
• B. May 11
• C. May 7
• D. May 5

Answer: (C)

The key idea is that earnest money must be deposited within two business days after mutual acceptance, counting only business days (weekends and holidays don’t count). If acceptance happens on May 5, you start with the next business day as day one and the following business day as day two. Those days are May 6 and May 7, so the earnest money should be deposited by the close of business on May 7. May 5 is just the acceptance moment, not the two-day window, and May 9 or May 11 would fall outside the required two business days.