Chris contracts to buy David's house on condition that Small Town Bank approves Chris's application for a mortgage loan by July 1.If Chris is not approved for the loan,then:
A)he still has a duty to buy the house.
B)he is discharged from further obligation under the contract.
C)his inability to get the loan constitutes a breach of contract.
D)he must renegotiate with David.

Question

Quizplus · Accepted Answer

Chris's duty to buy David's house is conditioned on the bank's approving his loan application by July 1.When a promisor's duty is conditional,his duty to perform is affected by the occurrence of the condition.In this case,since the condition did not occur,Chris has no duty to buy the house.His failure to buy it because of the nonoccurrence of the condition will not constitute a breach of contract.Rather,he is discharged from further obligation under the contract.

Chris Contracts to Buy David's House on Condition That Small