Don agrees to buy Ed's Bicycle Store on the condition that First State Bank approves the financing. This approval is
A) a concurrent condition.
B) a condition precedent.
C) a condition subsequent.
D) a solvent condition.

Question

Quizplus · Accepted Answer

A condition precedent is a condition that must be met before a contract can become binding. In this case, the approval of financing from First State Bank is a condition that must be met before Don can proceed with purchasing the bicycle store from Ed.

Don Agrees to Buy Ed's Bicycle Store on the Condition