Flashcards Studio

O owner X sells a parcel of land to Y. The deed provides: “This sale is subject to a condition that within nine months from the date of this contract, the buyer shall deposit the full purchase price with an escrow agent approved by the seller; if the buyer fails to deposit the full price within the period, ownership shall revert to the seller.” (a)Identify the kind of condition involved and explain how it operates in terms of suspensive vs. resolutory and its effect on title. (b)Classify the condition as potestative or non-potestative, and justify your answer with the governing rule. (c)Suppose the buyer deposits the full price within the period. what is the effect on the conditional clause and on the transfer of title? Conversely, if the buyer fails to deposit within the period, what happens to ownership and to the land title?