conditions to performance Flashcards
Condition
So if the event happens as described in the condition, then a party’s duty to perform with kick in or end
express condition
that comes out of express language (spoken or written) used by parties in forming a contract.
Must be strictly complied with, event must happen exactly as described in the condition to trigger or terminate a duty to perform
constructive condition
Implied by Law and Substantial Performance:
These are legal principles that come into play when the parties haven’t specified the order of performance in their agreement. Substantial performance means doing most of what was promised.
Constructive Conditions: These are used by courts to decide the order in which parties should perform their duties when it’s not clearly stated in the contract.
Condition precedent
must occur before a party’s duty to perform is triggered
Condition subsequent
an event that when it happens terminates a parties duty to perform
What if there is only substantial performance of the condition, has the condition been met? does the other party have a duty?
the condition has not happened and other party has no duty
Ezz→ if sandy sells 100 umbrellas gets $100
If sandy sells 99 umbrellas, then gets nothing, no matter how hard he worked
express condition framework
did parties intend to include an express condition in the contract?
did the event described in condition happen?
if condition has not occurred, has condition been excused?
4 excuses to conditions and duty to perform
If condition is excused the duty to perform (for a condition precedent) arises or terminates (for a condition subsequent). Excuse has same effect as if the condition occurred
- Waiver
- Estoppel
If a party decides to waive a condition and the other party relies on that promise, the court will enforce it to prevent unfairness - Wrongful hinderance
If one party intentionally tries to stop a condition from happening, the court wont make the other party stick to it - Avoidance of forfeiture
If enforcing the condition will result in big loss for someone and it is not that important the court may let it slide to avoid unfairness
constructive condition and ordering performance
If a contract doesn’t specify the order of performance, the court will step in with constructive conditions to sort things out.
Two basic rules apply:
If one party’s part takes time and the other’s can be done quickly, the longer one goes first.
If both parts can be done at the same time, they should be done simultaneously.