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Question 1

What is a simple or true condition?

Answer 1

An event outside the control of either party but that must happen to make promises enforceable. Ie: I will sell you my laptop if it rains today

Question 2

What is a covenant?

Answer 2

A promise that depends on the cooperation of the party

Question 3

If a party has some control over an event occurring, that makes it what two things?

Answer 3

Both a condition and a covenant

Question 4

If reasonable good faith efforts are not used, what happens to the condition?

Answer 4

It goes away and causes a breach by that party

Question 5

If you are having a portrait painted to your satisfaction, what are both parties obligated to do?

Answer 5

Act in good faith, the painter must try his best, and the buyer must also

Question 6

If parties don’t include an important term, and the court, in the interest of justice, supplies it, once it is created it becomes what?

Answer 6

Full-fledged promise supplied through good faith and fair dealing

Question 7

If an omission is trivial and innocent, does it have to result in breach or forfeiture?

Answer 7

No, it can just be atoned for by allowing the resulting damage based on it’s purpose, the cruelty of adhering to it etc.

Question 8

If the parties don’t state the order of performance, constructive conditions will fill those gaps based on what?

Answer 8

Common sense of the average person

Question 9

If one party’s performance precedes the other’s, the first is called what?

Answer 9

A constructive condition to the second

Question 10

“I will sell you my watch and deliver on Tuesday, and you will pay on Friday.” Does that have any conditions?

Answer 10

It doesn’t look like it, but since performance precedes the duty, there is a constructive condition to the duty to pay. If delivery doesn’t happen, there is no duty to pay. If delivery does happen, the duty is mature, so you must pay or be in breach

Question 11

What is the rule for when a party performs over an extended period of time and the other party performs in a moment?

Answer 11

The performance that takes time must happen first, so substantial performance is an implied condition to the duty to pay

Question 12

If periodic payments have been agreed on, when should payment happen?

Answer 12

Performance is a constructive condition precedent to the first payment, and that payment is a constructive condition precedent to the next stage of work

Question 13

What are the duties when there are simultaneous performances?

Answer 13

Each duty of performance is constructively conditioned on tender of the other (promisor shows readiness, willingness, and ability to perform conditioned on the other party’s reciprocal tender)

Question 14

If I say, “I will sell you my car and you will pay for it,” what should happen?

Answer 14

The car and the money will be tendered at the same time, and each performance is conditioned on the other. If the car isn’t tendered, the money needn’t be, and vice versa. If neither tenders anything, the conditions were not satisfied, so no breach. If one tenders something, the other must too.

Question 15

What must be the result of every condition?

Answer 15

It must be excused or satisfied so the performance can become performable

Question 16

What is an excused condition?

Answer 16

The condition didn’t take place, but the plaintiff can recover on the contract if he was ready, willing, and able to perform. Excused conditions happen by waiver, breach, or forfeiture.

Question 17

What are the ways a condition can be excused by wrongful conduct?

Answer 17

Prevention/hindrance, termination of a business

Question 18

If a party wrongfully prevents/hinders fulfillment of a condition, what happens to the condition?

Answer 18

It is excused, because a party can’t take advantage of his own wrongful conduct to escape liability

Question 19

If someone contracts to build a house, and promises to pay when a certificate of completion is given, and the owner bribes the certificate person not to give the certificate, what does that do to the condition?

Answer 19

Excuses it because of the wrongful conduct

Question 20

If a contract is conditioned on the continued operation of the business, and the business closes down, what happens?

Answer 20

Depends on the type of contract:

• requirements/output: if seller had valid reasons for closing that were unrelated to the contract, it is allowed. Otherwise it is not.
• agreement to share profits: the existence of profits is a condition to the obligation