ch.25 - conditions to performance

Question 1

what is a condition?

Answer 1

a future event that is uncertain to occur

Question 2

express conditions

Answer 2

conditions that arise from the express language of the parties

Question 3

constructive conditions

Answer 3

default rules that courts use to achieve an equitable result

Question 4

conditions - good faith

Answer 4

there is an implied duty of good faith that the obligor makes efforts to satisfy the condition

Question 5

condition precedent

Answer 5

event that must occur before the duty or right arises

Question 6

condition subsequent

Answer 6

event that terminates a duty or legal right

Question 7

steps for solving

Answer 7

1. Did the parties intend to put an express condition in the contract?
2. Has the condition occurred?
3. IF NOT, had the condition been excused?

Question 8

Step 1:
Did the parties intend to put an express condition in the contract?

Answer 8

a. The parties intent must be clear and unambiguous
b. “provided that” “as long as” “given that” “in the event that” “if… then”

Question 9

Step 2:
Has the condition occurred?

Answer 9

a. STRICT COMPLIANCE
b. The event must match the terms of the condition exactly.
c. Substantial performance does not apply

Question 10

Step 3:
Has the condition been excused? What are excuses available?

Answer 10

• express waiver
• estoppel
• hinderance
• forfeiture

Question 11

Express waiver

Answer 11

• The contract stays in place but one party chooses not to enforce a particular term
• Not a modification

Question 12

estoppel

Answer 12

• Promise to waive a term
• Other party takes rsbly foreseeable actions to their detriment in reliance to the promise to waive

Question 13

hinderance

Answer 13

• No good faith
• Party w the conditional duty to perform acts in bad faith to prevent the condition from occurring

Question 14

forfeiture

Answer 14

If one party experiences a disproportionate forfeiture