Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

Exercise 5

Schlosser entered into an agreement to purchase a cooperative apartment from Flynn Company. The written agreement contained the following provision: ''This entire agreement is conditioned on Purchaser's being approved for occupancy by the board of directors of the Cooperative. In the event approval of the Purchaser shall be denied, this agreement shall there after be of no further force or effect.'' When Schlosser unilaterally revoked her ''offer,'' Flynn sued for breach of contract. Schlosser claims the approval provision was a condition precedent to the existence of a binding contract and, thus, she was free to revoke. Decision?