Aidan and Nadia Are Parties to a Contract That Allows

question 32

Multiple Choice

Aidan and Nadia are parties to a contract that allows Nadia to enforce an "acceleration clause" (as that term was used in the text) . Which of the following statements is most likely TRUE?

• A) Nadia is concerned that Aidan may fall into a habit of failing to make loan payments on schedule.
• B) Nadia is entitled to repay a debt to Aidan more quickly than their contract contemplates.
• C) Nadia borrowed money from Aidan.
• D) The parties' contract is subject to a condition precedent that requires Aidan to do something (such as arrange financing for the purchase) within a certain period of time.
• E) Aidan is indebted to Nadia, but he cannot possibly be a mortgagor.

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Definitions:

Consideration

In contract law, the benefit or value that each party agrees to exchange as part of a contractual agreement, which is a requirement for a valid contract.

Assignee

A person to whom an assignment is made.

Assignor

The maker of an assignment.

Donee Beneficiary

A third party who benefits from a contract made between two other parties, intended by those parties to receive a benefit from the contract.