Promises Flashcards
s76 Conditional Promises
Condition precedent:
An event that must occur before a party is obligated to perform a promise.
Condition Precedent:
Example: A homeowner promises to pay a contractor $10,000 if the contractor completes the renovation of the kitchen by June 1st. The contractor’s right to payment is conditional upon completing the renovation by the specified date.
Condition concurrent:
Events that must occur simultaneously for both parties to perform their promises.
Example: In a real estate transaction, the buyer promises to pay the purchase price at the same time the seller delivers the deed to the property. Both the payment and the delivery of the deed must occur simultaneously for the transaction to be completed.
Condition subsequent:
An event that, when it occurs, terminates the duty to perform a promises
Example: An insurance company promises to cover damages from a car accident unless the driver is found to have been driving under the influence of alcohol. If it is later determined that the driver was intoxicated, the insurance company’s obligation to cover the damages is terminated.
