Definitions
Two types:
- SUSPENSIVE CONDITION – SUSPENDS (puts a hold on) the operation of ALL OR SOME of the obligations flowing from the Agreement until the occurrence of a future uncertain event (Condition Precedent)
- RESOLUTIVE CONDITION – TERMINATES (stops) ALL OR SOME of the obligations flowing from the Agreement when/upon the occurrence of a future uncertain event (Condition Subsequent)
Above conditions create an interim relationship between signature date and fulfilment of the condition
Term vs Condition
- Term – can be enforced and has to be complied with. The contractual obligation is immediate i.e. payment of the deposit
- Condition – A condition (whether suspensive or resolutive) makes the operation of the contract dependent upon an uncertain future event whereby the operation of the obligation is suspended