Victoria entered into a written agreement with Samuel for the purchase and sale of a house. The agreement stated: "This contract is contingent upon buyer being able to obtain a mortgage loan in the amount of $50,000." Victoria was about to start the process of applying for the mortgage loan when Samuel decided to sue her and seek a declaratory judgment that the alleged contract was void as Victoria's promise was illusory. Victoria, he argues, can effectively defeat the alleged "contract" by failing to seek out mortgage financing. What result is most likely?

•  A. The court will declare that the financing condition is void, because it is akin to an option and lacks consideration.
•  B. The court will declare the contract to be illusory, because of the uncertainty that the loan will be granted.
•  C. The court will declare that the contract is illusory, because it does not expressly state that Victoria is obligated to apply for a mortgage loan
•  D. The court will declare that the contract is valid, because there is an implied term in the contract that Victoria will use good faith and reasonable efforts to meet the express condition for financing.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below D The court will declare that the contr... View the full answer