I appreciate your thoughts and the wisdom gathered form all those who have responded. 

How would a formal cancellation of a contract look like ?

I believe that once you start  the formal process, one has 30 days .

I am a single member LLC so while I did do an operating agreement with another site (there was a trial period so I completed the form and then cancelled my membership, but may return in the future)...just for formality sake...I didn't feel it was absolutely necessary.

If you are getting formal approval by the bank, I'd say "assumption" is universally acceptable. 

I personally think banks like seeing a formal entity and knowing you are creating a business. 

Once I have the property under contract, I will be looking for formal bids.The property is in Bloomfield, NJ so anyone in Montclair, Newark, Orange, East Orange, Belleville, Glen Ridge, Nutley Clifton, Passaic, Lyndhurst would be great (sorry everyone for the keyword alert blast!).

Let your closing attorney and the other professionals you choose worry about the more formal documentation.

If I am attempting to purchase properties at 30% below retail less repair costs would I have enough cushion to forego a formal inspection? 

But some investors do make a more formal, written offer, more so when a verbal offer is declined.