William Enters into an Agreement with Phyllis to Advance $300

question 80

Multiple Choice

William enters into an agreement with Phyllis to advance $300 000 to Phyllis for the purchase of garage equipment.Phyllis agrees to give William a mortgage over her home as security for the advance of the money.The terms of the agreement contain an appraisal provision that the commitment to make the loan is subject to an appraisal of Phyllis' home of at least $350 000.The appraisal provision is known as:

• A)an implied term.
• B)a warranty.
• C)a condition term.
• D)a condition precedent.
• E)a condition subsequent.

---

Definitions:

Redeems

The act of exchanging something such as coupons, vouchers, or securities for goods, services, or money.

Gain

Financial benefit realized from activities such as the sale of an asset for more than its original purchase price.

Loss

A financial condition indicating that expenses have exceeded revenues, leading to a negative income.

Bonds Payable

Long-term liabilities on a company's balance sheet, representing debt obligations that the company must repay to bondholders at a specified date.