If a Contract States That the Contract Is "Subject to the Purchaser

question 24

Multiple Choice

If a contract states that the contract is "subject to the purchaser obtaining financing for $10,000 at 8% by 5:00 p.m. Friday, March 11," it means that

• A) if the purchaser does not obtain the financing, he is in breach of contract.
• B) if the purchaser does not obtain the financing, the contract is frustrated.
• C) if the purchaser does obtain the financing and properly notifies the seller, the contract is then in full force and effect.
• D) there is a contract whether the purchaser gets the financing or not, because the statement is just a statement of intention and doesn't affect the contract.
• E) the obtaining of financing is a condition subsequent and ends the contract.

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Definitions:

Intuition

An experienced-based way of knowing or reasoning in which the weighing and balancing of evidence are done unconsciously and automatically.

Inspirational Business Name

A creative and motivating name chosen for a business to inspire potential customs and reflect the company's ethos.

Workflow

The sequence of processes through which a piece of work passes from initiation to completion in a business or work environment.

Working Conditions

The environment, including hours, physical aspects, and any hazards, in which employees perform their jobs.