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

question 25

Multiple Choice

If a contract states that the contract is "subject to the purchaser obtaining financing for $10 000 at 8 percent 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.