What Is the Legal Term Given to a Clause That

question 65

Multiple Choice

What is the legal term given to a clause that makes a contract enforceable against a buyer only if the buyer is able to secure a satisfactory building inspection?

• A) a liquidated damages clause
• B) a limitation of liability clause
• C) an condition subsequent
• D) a condition precedent

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Definitions:

Factor

A finance company to which businesses sell their accounts receivable—usually for a percentage of the total face value.

Prime Rate

The interest rate that commercial banks charge their best customers (usually large corporations) for short-term loans.