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Conditions of a Contract

freeimage-5587464-web (800x539)Conditions of a contract can be categorized by two methods: the effect on the duty to perform and the way in which they were created.

Conditions that are based on their effect on the duty to perform are:

  1. Condition precedent: If the condition occurs, then an action must be fulfilled. If the condition does not occur, then no action is required.
  2. Concurrent conditions: Both parties must fulfill their responsibilities of the contract at the same time, and each performance is conditioned on the other party’s performance.
  3. Condition subsequent: A future, uncertain event that releases a party from their responsibilities under the contract.

Conditions of a contract that are based on the way they were created include:

  1. Express condition: The condition is specifically stated in the language of the contract. Courts take these types of conditions very seriously.
  2. Implied-in-fact condition: The condition is implied by the contract. Ex: If the condition is that Party A will unload cargo from a ship, it is implied that the ship will arrive in the port.
  3. Constructive conditions: These conditions are imposed by law rather than by the contract.

If you need a contract drafted or reviewed, contact Boyer Law Firm’s contract attorneys today. Don’t sign anything that you don’t understand.

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