Pet Aware is an animal shelter and receives an upfront, unsolicited 2-year grant of $800,000 from Kindig Company (the owner of Kindig is a dog lover). The grant specifies that the money should be used to expand Pet Aware’s operations. The agreement indicates that Pet Aware must expand its operations by 6,000 square feet to accommodate additional animals by the end of 2 years. The grant contains a right of return for any unused assets. Explain whether this grant is an unconditional or conditional grant.

Question

Pet Aware is an animal shelter and receives an upfront, unsolicited 2-year grant of $800,000 from Kindig Company (the owner of Kindig is a dog lover). The grant specifies that the money should be used to expand Pet Aware’s operations. The agreement indicates that Pet Aware must expand its operations by 6,000 square feet to accommodate additional animals by the end of 2 years. The grant contains a right of return for any unused assets. Explain whether this grant is an unconditional or conditional grant.

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