A clause in a contract that makes a contract enforceable against a buyer if the buyer is able to obtain financing is
A) a condition precedent.
B) a limitation of liability clause.
C) an entire contract clause.
D) a condition subsequent.

Question

Quizplus · Accepted Answer

A condition precedent is a clause that specifies that certain conditions must be met before a contract becomes binding. In this case, the condition is that the buyer must be able to obtain financing. If the buyer cannot obtain financing, then the contract is not enforceable. Therefore, this clause makes the contract enforceable only if the condition precedent is met.

A Clause in a Contract That Makes a Contract Enforceable