UBE Question of the Day
Bar Exam Multiple Choice Questions
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Today's Question:
A homeowner and a decorator contracted in a signed writing to remodel the homeowner’s kitchen for $5,000. Before the writing was signed, the parties orally agreed that the contract would be void if the owner did not obtain a $5,000 bank loan within thirty days. Despite a good-faith effort, the homeowner could not obtain a loan. Just before the thirty days elapsed, the homeowner told the contractor that the agreement was off and that work should not commence. If the decorator sues the homeowner for breach of contract, can the homeowner assert her inability to obtain a loan as a defense?
(A) Yes, because obtaining a loan was a condition precedent to the existence of an enforceable contract.
(B) Yes, because the agreement about obtaining a loan is a modification of a construction contract and is not required to be in writing.
(C) No, because the agreement about obtaining a loan contradicts the express and implied terms of the writing.
(D) No, because the homeowner is estopped from denying the validity of the written agreement.
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