Humber/Ontario Real Estate Course 1 Exam Practice

When Buyer Wendelson needs more time to satisfy contract conditions, what must happen?

1. Both parties must agree in writing to a time extension to make it legally enforceable.

2. A formal notice must be forwarded by Wendelson to Chao to make the time extension legally enforceable.

3. A time extension must be in compliance with the Vendors and Purchasers Act.

4. A verbal agreement is sufficient since Chao has signed the agreement to sell.

5. A new contract must be drafted and signed by both parties.

6. Only Wendelson needs to agree to the time extension.

The correct answer is: Both parties must agree in writing to a time extension to make it legally enforceable.

The correct answer emphasizes the importance of mutual agreement in a contractual context. When a buyer like Wendelson requires additional time to satisfy contract conditions, it's crucial for both parties to consent to that extension formally. This ensures that the modification to the timeline is legally enforceable and prevents any disputes in the future regarding the agreed-upon terms. Having both parties agree in writing creates a clear record of the modification, thus protecting the interests of both Wendelson and Chao. It confirms that both have acknowledged the change and agree to the new timeline, which is essential for maintaining the integrity of the contractual relationship. Other options do not adequately address the necessity of mutual assent for legal enforceability. For instance, simply sending a formal notice or a verbal agreement may not provide the necessary legal grounding for a change in contract terms. Additionally, requiring compliance with external regulations or drafting a new contract would add unnecessary complexity when a simple written agreement suffices.