Contracts

A 'suspensive condition' in Louisiana contract law is a condition that:

AImmediately terminates a contract when it occurs
BSuspends the effectiveness of an obligation until the condition is fulfilled✓ Correct
CRequires both parties to sign the contract simultaneously
DSuspends the seller's right to accept other offers

Explanation

A suspensive condition suspends the effectiveness of a contractual obligation until the specified condition is met — for example, a financing contingency suspends the buyer's obligation to purchase until loan approval is obtained.

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