Ghee agrees to buy Hole's Donut Shop on the express condition that the shop's suppliers extend the same credit terms to Ghee that the suppliers currently extend to Hole. This approval is
A)a concurrent condition.
B)a condition precedent.
C)a condition subsequent.
D)an implied condition.

Question

Quizplus · Accepted Answer

A condition precedent is a requirement that must be fulfilled before a party's performance can be required under a contract. In this case, Ghee's agreement to buy the donut shop is contingent upon the suppliers agreeing to extend the same credit terms to Ghee as they currently do to Hole. This means Ghee's obligation to proceed with the purchase is conditional upon this requirement being met first.

Ghee Agrees to Buy Hole's Donut Shop on the Express