Frequently,real Estate Contracts Are Conditioned on an Event Such as the Buyer's

question 4

Multiple Choice

Frequently,real estate contracts are conditioned on an event such as the buyer's ability to sell his current home by a certain date.If the home does not sell,the condition does not arise,and the parties have no duty to perform and are thus discharged from the contract.This is an example of a contract that is subject to a ________.

• A)condition subsequent
• B)condition precedent
• C)concurrent condition
• D)real condition
• E)fixed condition

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Definitions:

Capital

Financial assets or the financial value of assets, such as cash and buildings, used by a business to produce goods and services.

Human Labor

This is the effort contributed by humans in the production process, including physical and intellectual contributions.

Marginal Productivity Theory

An economic theory that suggests that the amount of compensation or wage received by a resource (like labor) is determined by its marginal productivity or the additional output generated by using one more unit of the resource.

Income Distribution

Describes how a nation’s total GDP is distributed amongst its population, impacting levels of wealth and poverty.