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Contracts and leasesSubject 4 of 19

Contingency

A contract condition that must be satisfied or waived for a stated obligation to become final or continue.

Direct answer

What does Contingency mean?

A contract condition that must be satisfied or waived for a stated obligation to become final or continue.

Exam cue: Read who benefits from the contingency, its deadline and what happens if the condition fails.

What does it look like in a question?

New York example

A mortgage contingency gives the buyer a stated period to obtain qualifying financing under the contract terms.

Common exam trap

What should you not confuse it with?

A contingency is not a casual preference. It is contract language with consequences.

Related contracts and leases terms

AssignmentA transfer of a party's contractual rights or leasehold interest to another person, subject to the agreement and law.ConsiderationSomething of legal value exchanged as part of a contract.CounterofferA response that rejects an offer and proposes different terms.Executed contractA contract in which the parties have completed the promised performance.Executory contractA contract under which one or more material obligations remain to be performed.LeaseholdA tenant's right to possess real property for the term and under the conditions of a lease.
Sources used2 references with section locators

The curriculum citation confirms exam scope. Definition and rule citations support the explanation itself. Links and locators were checked on August 26, 2026.

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