Express Condition Flashcards
1
Q
Condition or Promise
A
- Performance of a duty subject of a condition cannot become due unless the condition occurs or its non-occurrence is excused.
- Unless it has been excused, the non-occurrence of a condition discharges the duty when the condition can no longer occur
- Non-occurrence of a condition is not a breach by a party unless he is under a duty that the conditions occur.
2
Q
Types of Conditions
A
- Conditions Precedent: A promise which by its terms is to be performed prior to the return promise.
- Condition Subsequent: An event, occurring after a duty has arisen, that discharges such duty.
- Concurrent Conditions: A promise that is capable of being performed simultaneously and neither party has a duty to perform until the other has performed.
3
Q
Satisfaction Clause
Strict
A
- Express Condition: Must be strictly fulfilled.
- Implied Condition: Based on trade, prior dealings, relationship, etc.
- Constructive Conditions: May be fulfilled with substantial performance and are ordered by the court.
4
Q
Satisfaction Clause
3rd Party
A
- Utilitarian things: Objective test of a reasonable person.
- Fancy, aesthetics: Subjective test as long as in “Good Faith.”
5
Q
Excused Conditions
A
To the extent that the occurrence or nonoccurrence of a condition would cause disproportionate forfeiture, a court may excuse it unless the occurrence was a material part of the agreed exchange.
6
Q
Waived Conditions
A
- Wrong prevention or hindrance of other party’s performance.
- Waiver: only available for conditions that solely benefit the party waiving it. (Can be withdrawn and the condition reinstated if the other party has not relied on such waiver to his detriment.)
- Rejection of proper tender of performance before duty to perform.
- Equitable Estoppel: where a party wrongfully prevented the occurrence of a condition.
- Impossibility to perform on non-material condition. (Must be substantial)
