Lucas offered to purchase Baker's snowmobile if he could arrange a loan with the bank for the funds. Lucas and Baker signed a written purchase agreement which did not mention the fact that Lucas did not have the necessary funds in his possession. If the bank refused to lend Lucas the money, the contract would be enforceable against Lucas.

Question

Quizplus · Accepted Answer

The contract between Lucas and Baker is contingent upon Lucas obtaining financing from the bank. If Lucas cannot secure the loan, the condition precedent (obtaining the loan) is not met, and therefore, the contract cannot be enforced against him for failing to purchase the snowmobile.

Lucas Offered to Purchase Baker's Snowmobile If He Could Arrange