Albert Owns a Piece of Land Called Blackacre

question 16

Multiple Choice

Albert owns a piece of land called Blackacre. He has accepted Dawn's offer to buy it for $200 000. That agreement of purchase and sale is, however, conditional on Dawn's ability to sell Whiteacre, a property that she currently owns. Which of the following statements is most likely TRUE?

• A) If Dawn changes her mind, she is fully entitled to avoid purchasing Blackacre simply by refusing to seek a purchaser for Whiteacre.
• B) The existence of the condition means that the parties will not have a contract unless and until Dawn sells Whiteacre.
• C) Albert can waive the condition and insist upon performance of the sale if Dawn is unable to find a purchaser for Whiteacre.
• D) The parties' agreement is subject to a condition subsequent.
• E) Although the contract is subject to a condition, Dawn has obligations that must be performed immediately.

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Definitions:

Wheat Farm

A type of agricultural establishment primarily engaged in the cultivation of wheat.

Natural Monopoly

A scenario in which a single company is able to offer a product or service more cheaply than any possible rivals, usually as a result of benefiting from the economies of scale.

Profit-Maximizing

Profit-maximizing is the process or strategy employed by businesses to adjust their production and sale operations to achieve the highest possible profit.

Firm

A business organization, such as a corporation, partnership, or sole proprietorship, engaged in commercial, industrial, or professional activities.