ContractsIntermediateAlabama Exam

An Alabama purchase contract that is subject to the buyer obtaining a satisfactory home inspection within 14 days is an example of a:

AVoid contract
BBilateral contract with a condition precedentCorrect
CUnilateral contract, under typical circumstances
DOptions contract

Why Bilateral contract with a condition precedent Is Correct

Answer B: Bilateral contract with a condition precedent

A bilateral contract with a condition precedent requires a specific event (satisfactory home inspection) to occur before one party is obligated to perform.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

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