A Agrees to Buy a Share in B's Invention for a Certain

question 93

Multiple Choice

A agrees to buy a share in B's invention for a certain sum on the condition that C first approves the invention.However,the written contract makes no reference to C's approval.C never gives his approval.B now sues A for the purchase price.In this situation

• A)whether or not C gives his approval is not relevant to the main contract between A and B.
• B)C's approval is a condition precedent that must be met before there is a contract between A and B
• C)the parol evidence rule applies to exclude the condition of C's approval.
• D)C's approval would be a warrantee used to overcome the parol evidence rule.
• E)A cannot rely on C's approval as a condition to the contract with B,because C is not a party to the contract.

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Definitions:

Equilibrium Quantity

The level of goods or services available and in demand at the point of price stability.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers in a market.

Equilibrium Quantity

The quantity of goods or services supplied is exactly equal to the quantity of goods or services demanded in the market.

Price Controls

Government-imposed limits on the prices that can be charged for goods and services, intended to curb inflation or protect consumers.