FIN 240 Chapter Notes - Chapter 18: Condition Subsequent, Executory Contract, Novation
Document Summary
In most contracts, they must be performed or the parties promising the acts will be in breach of contract. Condition - qualification in a contract based on a possible future event. Condition precinct - condition that must be fulfilled before a party"s performance can be required. Condition subsequent - when a condition operates to terminate a party"s absolute promise to perform. If the condition occurs, the party"s duty to perform is discharged. Conditions precedent are common, and conditions subsequent are rare. Concurrent conditions - when each party"s performance is conditioned on the other party"s performance or under of performance. These conditions exist only when the contract expressly or impliedly calls for the parties to perform their respective duties simultaneously. Express conditions - provided for by the parties" agreement. Although no particular words are necessary, express conditions are normally prefaced by the words if, provided, after, or when.
