Smith and Roberson's Business Law 16th Edition by Richard Mann,Barry Roberts

Exercise 12

Barta entered into a written contract to buy the K K Pharmacy, located in the local shopping center. Included in the contract was a provision stating that "this Agreement shall be contingent upon Buyer's ability to obtain a new lease from Landlord for the premises presently occupied by Seller. In the event Buyer is unable to obtain a lease satisfactory to Buyer, this Agreement shall be null and void." Barta planned to sell "high traffic" grocery items such as bread, milk, and coffee to attract customers to his drugstore. A grocery store in the local shopping center, however, held the exclusive right to sell grocery items. Barta, therefore, could not obtain a leasing agreement meeting his approval. Barta refused to close the sale. In a suit by K K Pharmacy against Barta for breach of contract, who will prevail? Explain.