Conditions

Question 1

What is a condition

Answer 1

state of the world whose occurrence either extinguishes or brings to life a party’s duty to perform

Question 2

Condition subsequent

Answer 2

extinguishes a duty

Question 3

Condition precedent

Answer 3

brings duty to life

Question 4

express condition

Answer 4

obligations that are contingent on something else happening/not happening (including, possibly, someone else’s actions)

Question 5

Promise

Answer 5

obligations that aren’t contingent on any other contingency or action

Question 6

Failure of promise

Answer 6

entitles one to damages; doesn’t excuse her duties

Question 7

Occurence of condition

Answer 7

excuses one’s duties, but doesn’t generally allow for damages

Question 8

Interpreting if an express condition is a condition or promise

Answer 8

Same as usual rules/canons of interpretation

Subjective intent; express terms; course of performance; course of dealing; trade usage

Parole evidence is usually allowed (interp exception)

Canons (construe against drafter; construe to avoid a “forfeiture”; specific expression excluded omission)

Strict satisfaction of conditions usually required

Formal burden of proof on party claiming the occurrence of condition
Condition precedence: on party alleging breach
Condition subsequent: on party claiming excuse
In doubtful cases, promises presumed (§ 261)