A contingency is a contract condition affecting a party's obligation to complete a transaction. An inspection or financing condition is a familiar example. Trace three checkpoints: what condition must be satisfied, when action is due, and what notice is required. These details determine how the contingency operates. An inspection concern does not automatically cancel every contract or guarantee a deposit refund. The agreement may require a timely notice, allow a response, or provide other options. Read the particular clause instead of assuming one universal result. Quick check: where do you find the steps for exercising an inspection contingency? In the contract: its language, deadlines, and notice requirements.