Coffeeshop, Inc., is looking for a new location. It agrees to buy a small house from Gary
Fantastic news! We've Found the answer you've been seeking!
Question:
Coffeeshop, Inc., is looking for a new location. It agrees to buy a small house from Gary for $280,000 if its bank will approve Coffeeshop, Inc.'s request for financing to purchase and renovate the house. The contract between Coffeeshop, Inc. and Gary is:
Unenforceable, because Coffeeshop, Inc.'s duty to buy is conditioned on the actions of the bank.
Enforceable because Coffeeshop, Inc. has made a promise, and all promises are adequate to constitute consideration.
Unenforceable, because Coffeeshop, Inc. has no control over whether the bank approves the financing.
Enforceable, because Coffeeshop, Inc. has made an enforceable conditional promise.
Related Book For
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
Posted Date: