1-Smith agrees to purchase Thompson’s home if he can acquire the necessary financing.

1-Smith agrees to purchase Thompson’s home if he can acquire the necessary financing. The type of clause that is inserted into the contract for the sale of the house is referred to as which of the following? (Select the best answer.)

a.A financing clause

b.A novation clause

c.The mortgagor clause

d.A condition precedent clause

e.A and D above

2- A contract can specify that non-performance of an obligation by one of the parties triggers immediate performance of otherwise future obligations under the contract. This type of clause is commonly referred to as

a.An immediate possession clause

b.A specific performance clause

c.An acceleration clause

d.A liquidated damages clause

e.An accounting clause