Asked by M JAWAD ARSHAD on Sep 30, 2024
Sherry and Gretchen orally agree that Sherry will begin paying Gretchen $500 per month,but if ABC Corp.dissolves,Sherry will no longer have to pay Gretchen.ABC Corp.dissolves and Sherry promptly stops making any future payments to Gretchen.Which of the following statements is true?
A) If Gretchen sues Sherry,Sherry will bear the burden of proving the occurrence of the condition.
B) This is an example of a condition precedent.
C) Gretchen cannot sue Sherry because the agreement was not in writing.
D) Gretchen's only course of redress is to bring an action against ABC Corp.
Condition Precedent
A condition that must be fulfilled before a contract becomes effective or before an obligation is required to be performed.
- Acquire knowledge on the different types and purposes of conditions in contractual agreements.
- Evaluate the obligations and entitlements linked to condition precedent and condition subsequent.
Learning Objectives
- Acquire knowledge on the different types and purposes of conditions in contractual agreements.
- Evaluate the obligations and entitlements linked to condition precedent and condition subsequent.