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.
I. Express and Constructive Conditions
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’...