An agreement for the purchase and sale of property included the following words: "Subject to the purchaser obtaining satisfactory financing by 5 p.m. on Friday, February 22, 2011." If the court held that this subject-to clause was so vague that "the entire contract was void for uncertainty," this would mean that
A) the contract was in existence but could not be enforced.
B) the contract was in existence but one party has the right to repudiate the contract.
C) the contract was never in existence.
D) the court will impose a reasonable alternative for the term in question.
E) the contract is in existence but the court will not do anything to help the parties.

Question

Quizplus · Accepted Answer

If the court holds that the subject-to clause is too vague, it means that there was no clear agreement between the parties regarding the financing condition. Therefore, the contract was never in existence.

An Agreement for the Purchase and Sale of Property Included