Contract Terms in 'Real' Contracts - Feb. 22

Question 1

What is a condition subsequent? (DeLong)

Answer 1

When a condition precedent becomes impossible or an event of discharge. (269)

Question 2

What is a condition precedent? (Q)

Answer 2

An event that must occur before a party’s promised performance is due. The party may avoid performance if the condition has not occurred and the nonoccurrence is not excused.

Question 3

What is a condition? (R)

Answer 3

A condition is an event, not certain to occur, which must occur, unless its non-occurrence is excused, before performance under a contract becomes due. (224)

Question 4

What can happen if a condition doesn’t occur? (R)

Answer 4

(a) Performance of a duty subject to a condition cannot become due unless the condition occurs or its non-occurrence is excused.

(b) Unless it has been excused, the non-occurrence of a condition discharges the duty when the condition can no longer occur.

(c) Non-occurrence of a condition is not a breach by a party unless he is under a duty that the condition occur. (225)

Question 5

How can an event be made a condition? (R)

Answer 5

An event may be made a condition either by the agreement of the parties or by a term supplied by the court. (226)

Question 6

What is a condition? (Studicata)

Answer 6

A condition is an event, which is uncertain to occur, upon which a duty of one of the parties depends. In other words, a condition is a term that limits or qualifies a promise (e.g., “I promise to pay you $200,000 for your house on the condition that I get approved for a loan.”). (Conditions, Excuses, and Anticipatory Repudiation)

Question 7

What is an express condition? (Studicata)

Answer 7

An express condition is one that is stated in the terms of the agreement.

Look for conditional language to indicate an express condition:

“X only if Y . . .”
“X provided that Y . . .”
“X on the condition that Y . . .”
“X in the event that Y . . .”
“X subject to Y . . .”

(Conditions, Excuses, and Anticipatory Repudiation)