When Examining and Enforcing Conditions Precedent and Conditions Subsequent, Courts

question 17

Multiple Choice

When examining and enforcing conditions precedent and conditions subsequent, courts:

• A) give stricter enforcement to conditions precedent and find conditions subsequent rarely enforceable.
• B) give stricter enforcement to conditions subsequent and find conditions precedent rarely enforceable.
• C) maintain that procedurally, with respect to who bears the burden of proof, conditions subsequent and conditions precedent differ.
• D) hold that, under modern law, both conditions subsequent and conditions precedent should only rarely be enforced.

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Definitions:

Fractional Reserve

A banking system in which only a fraction of bank deposits are backed by actual cash on hand, with the rest being available for loans.

Banking System

The network of banks and financial institutions that provide financial services to consumers, businesses, and other banks.

Reserve Ratio

The fraction of deposits that a bank must hold in reserve and not lend out, as required by monetary authorities.

Reserve Ratio

The fraction of depositors' balances that banks must have on hand as cash, a requirement determined by the central bank.