Wilf Agreed to Purchase a Business from Celine

question 17

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 receive financing.Which of the following statements is most likely TRUE?

• A)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
• B)Wilf is liable for breach of the quoted condition if he did not make any attempt to secure financing.
• C)Wilf is liable for breach of a subsidiary obligation if he did not make any attempt to secure financing.
• D)Although the parties' agreement referred to a "condition," a court will find that that agreement was really subject to an option to terminate.
• E)The result in this case will depend upon whether or not the "condition" that the parties referred to was really a warranty.

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Definitions:

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Wilhelm Wundt

A German physician, physiologist, philosopher, and professor, known as one of the founders of modern psychology.

William James

An American philosopher and psychologist, often referred to as the father of American psychology, known for his work in pragmatism and functional psychology.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.