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

question 20

Multiple Choice

If a contract states that the contract is "subject to the purchaser obtaining financing for $10,000 at 8% by 5:00 p.m. Friday, March 11," it means that

• A) 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.
• B) the obtaining of financing is a condition subsequent and ends the contract.
• C) if the purchaser does not obtain the financing, the contract is frustrated.
• D) if the purchaser does not obtain the financing, he is in breach of contract.
• E) if the purchaser does obtain the financing and properly notifies the seller, the contract is then in full force and effect.

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Definitions:

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