Contracts
Condition Precedent
Definition
A condition precedent is an event or fact that must occur before a party's duty to perform under the contract is triggered. If the condition does not occur, the obligation never becomes due. Conditions may be express (explicitly stated) or constructive (implied by law). Courts tend to disfavor forfeitures and may construe ambiguous language as a promise rather than a condition to avoid harsh results.
Example
A contract states 'Buyer's obligation to purchase is conditioned on securing financing by June 1.' If financing is not obtained, the buyer has no duty to close.