Question

Maurice finds a dream home on the lake. He wants to buy it but is unsure whether he can get a loan. He signs a contract with the seller that he will buy the home provided that he can get a loan. Maurice also includes a contractual clause in the contract with the seller that if he loses his job before the date the purchase contract is signed, the seller will release him from any obligation. After getting a loan and buying the home, Maurice decided that he wanted new windows. He entered into a contract with a window contractor. The window contractor visited the home, but Maurice was always gone. The contractor made several attempts to reach Maurice, but Maurice would not return phone calls and made no attempt to assist the contractor with installation.
The provision that Maurice did not have to buy the house unless he was able to get a loan is referred to as which of the following?
A. A condition subsequent
B. A condition precedent
C. A bona fide condition
D. A condition concurrent

Answer 1

Answer:

B. A condition precedent

Explanation:

A condition precedent refers to an event i.e. needed prior something else would arise. It is an event that must arrise until its non-occurence would be excused prior performing under a contract treated to be due i.e. prior any type of contractual duty would be existed

So according to the given situation, it is a condition precedent

Therefore the option b is correct