Wilf Agreed to Purchase a Business from Celine

question 70

Multiple Choice

Wilf agreed to purchase a business from Celine. The parties' contract stated that the deal was to close on June 1, when Wilf would pay $250 000 to Celine and she would transfer the appropriate documents to him. The parties' contract also said: "This sale is conditional upon Wilf's ability to arrange suitable financing from a lending institution." On June 1, Celine called for payment of the purchase price, but Wilf explained that he had not been able to received financing. Which of the following statements is most likely TRUE?

• A) Although the parties' agreement referred to a "condition," a court will find that that agreement was really subject to an option to terminate.
• B) The result in this case will depend upon whether or not the "condition" that the parties referred to was really a warranty.
• C) Wilf is liable for breach of the quoted condition if he did not make any attempt to secure financing.
• D) because the contract was "conditional," the parties never had an enforceable agreement. Consequently, Wilf cannot be held liable even if he did not make any effort to secure financing
• E) Wilf is liable for breach of a subsidiary obligation if he did not make any attempt to secure financing.

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Definitions:

Temporal Lobes

Regions of the brain located on either side of the head above the ears, involved in processing auditory information and encoding memory.

Occipital Lobes

The portion of the cerebral cortex lying at the back of the head; includes areas that receive information from the visual fields.

Association Areas

Areas of the cerebral cortex that are not involved in primary motor or sensory functions; rather, they are involved in higher mental functions such as learning, remembering, thinking, and speaking.

Reticular Formation

A nerve network that travels through the brainstem into the thalamus and plays an important role in controlling arousal.