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Learn about contract terms that make a party's performance conditional upon the occurrence of a certain event and what happens when a condition does not occur.


In this lesson, we’ll discuss conditional terms in contracts. We’ll learn what conditional terms are and how they can affect the parties’ duty to perform.

A condition is an uncertain event that must occur before a party can be required to perform. For example, a buyer and seller entered into a contract for the sale of a car. The buyer agreed to pay $20,000 if the seller delivered the car within a week. The delivery of the car is a condition, because it’s not certain that the seller will...