Condition

• Condition: describes when the duty to perform a promise comes into/out of effect
  • Must be fully met in order for the duty to perform matures
  • Key indicators: if, then, when, which, unless, given
  • Oppressive, so courts prefer promises over conditions.
  • Good faith requirement
• Condition Precedent: If the condition occurs, then there is a duty to perform
  • If condition, then duty
• Condition Subsequent: Duty to perform ends when condition occurs
  • Ex. Elizabeth promises to deliver ice cream to Lana when the temperature is 70 degrees F or higher.  Elizabeth shall not have to deliver ice cream when the temperature is 100 degrees F or higher.
    • Promise: Deliver ice cream to Lana
    • Condition Precedent: Temp is 70 degrees F or higher
    • Condition Subsequent: Temp is 100 degrees F or higher
• Constructive Condition (Implied-in-Law Condition): a condition that the court imposes after-the-fact, though it is not expressly stated in the contract.
  • Often instated to make sure the contract is not interpreted literally, and to promote justice.
  • Ex. Oakpass Capital Inc enters  a contract with William. William promises to pay $100K for Oakpass Capital Inc’s services.  William pays 100K Canadian dollars even though both Oakpass Capital Inc and William live in California. The judge imposes a constructive condition on the contract and orders William to pay 100K in American dollars.