A Clause in a Contract That Makes a Contract Enforceable

question 23

Multiple Choice

A clause in a contract that makes a contract enforceable against a buyer if the buyer is able to obtain financing is

• A) a condition precedent.
• B) a limitation of liability clause.
• C) an entire contract clause.
• D) a condition subsequent.

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Definitions:

Externalities

Fiscal aftereffects that influence neutral individuals, having either favorable or adverse effects.

Cost

An amount that must be paid or spent to buy or obtain something, covering expenses such as manufacturing, labor, or materials.

Benefit

The advantage or profit gained from something, often used in the context of weighing costs against benefits in decision-making processes.

Freely Functioning Market

A market where goods and services are traded without any restrictions or interventions from governments.