15. Polly agrees to buy Quinn\'s Cycle World but only if Ridgeline Credit Union
ID: 424912 • Letter: 1
Question
15. Polly agrees to buy Quinn's Cycle World but only if Ridgeline Credit Union approves the financing. This approval is a: a. Condition precedent. b. Condition subsequent. c. An illusory promise. 16. Ed's Electric substantially performs its contract with Forest Hills Apartments, Inc., to deliver and install an alarm system and parking lot lighting. Ed's is entitled to a. Nothing due to the breach of contract. b. Payment to the extent that it performed the contract. c. Full payment of the contract price since it did substantially perform.Explanation / Answer
15. Answer- Condition precedent
Explanation- A condition precedent is a legal term which is used to refer to an event wherein a condition or event must be passed before the actual event occurs or a specific contract is said to be valid or any obligation is expected to be fulfilled by both the parties.
Other options- condition subsequent- is a state of affairs or event wherein the event brings an end to something else; Illusory promise is a promise that is unenforceable due to reasons like indefiniteness or lack of mutuality. Only one party is bound to perform. Though it looks like a contract, it is not enforceable.
16. Answer- Payment to the extent that it performed the contract.
Explanation- Substantial performance of a contract means performing as per the contract terms but not fully completed as in complete performance. However, the level of performance is such that no breach of contract can be claimed as the substantial performance is an acceptable level. All the material aspects of the contract have been performed in a substantial contract. However, the non-material aspects are left unfinished. The owner remains obligated to make the payment to Ed for the performed part of the contract. Damages are claimed by subtracting the cost of remedy from the contract price.
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