An Agreement for the Purchase and Sale of Property Included

question 4

Multiple Choice

An agreement for the purchase and sale of property included the following words: "Subject to the purchaser obtaining satisfactory financing by 5 p.m.on Friday,February 22,2011." If the court held that this subject to clause was so vague that "the entire contract was void for uncertainty," this would mean that

• A) the contract was in existence but could not be enforced.
• B) the contract was in existence but one party has the right to repudiate the contract.
• C) the contract was never in existence.
• D) the contract is in existence but the court will not do anything to help the parties.
• E) the court will impose a reasonable alternative for the term in question.

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Definitions:

Grantor

An individual or entity that transfers property rights to another person or entity.

Constructive Trusts

Legal arrangements treated by a court as if they are actual trusts, when someone has wrongfully obtained or withheld property that rightfully should belong to another.

Creator

An individual or entity that brings something new into existence or is responsible for the original conception of a work or idea.

Resulting Trust

A trust that arises by implication of law when one person holds property for the benefit of another under certain circumstances, typically when the title holder is not intended to have beneficial ownership.