As part of a larger business plan,Ronald and Margaret devised an arrangement that would involve the shipment of widgets to the island of Abuc in the Caribbean.They are concerned,however,that their plan might violate the Trading with Enemy Islands Act,which prohibits the export of goods to certain Caribbean nations.Ronald and Margaret nevertheless want to immediately draft a document that sets up a structure for the shipment of widgets to Abuc,but that will not expose them to liability if,after seeking government approval for their plan,they learn that widgets cannot legally be sent to Abuc.As a matter of risk management,which of the following statements provides the best advice? Ronald and Margaret should insert

Question

Quizplus · Accepted Answer

A true condition precedent means that the obligation to perform the agreement is suspended until a certain condition is met. In this case, the condition would be receiving government approval to ship widgets to Abuc without violating any laws. If the condition is not met, the agreement would not come into effect, and there would be no liability for Ronald and Margaret. This approach provides the most protection for them in terms of risk management.

As Part of a Larger Business Plan,Ronald and Margaret Devised