Conditions Flashcards
(5 cards)
What is the effect of a waiver of a condition?
When a condition is waived, it is excused and there is no breach.
How can a party waive a condition?
A party can waive a condition through their conduct or through their express words.
A party waives a condition through their conduct if they perform their part of the agreement despite knowing that the other party breached a condition.
What is the effect of the breach of an express condition?
The breach of an express condition is considered a material breach. The nonbreaching party is therefore discharged of their duty to perform and may sue for damages.
If the nonbreaching party continues to perform, however, they have waived this condition through conduct.
Condition precedent v. condition subsequent
A condition precedent is one that must happen before a party is required to perform. AKA a party’s duty to perform is delayed until the condition occurs.
A condition subsequent is one whose occurrence excuses performance. AKA a party’s duty to perform is excused if the condition occurs.
How does the implied duty of good faith and fair dealing apply when it comes to conditions?
A party must make a good faith effort to meet a condition and uphold their end of a bargain.
A party who, in bad faith, prevents a condition from occurring will not have their performance excused.
