Terms

Condition Precedent

A legal term for an occurrence of specific event that must occur before corresponding event occurs. A condition that must precede or predate a specified event. It is, in effect, the catalyst that causes something else to occur. A contract may stipulate that a material event or exchange will occur if and only if another event occurs before or in precedent to that event.

Condition Subsequent

A clause that terminates a previously valid contract. Certain types of contracts have clauses built in providing information about what happens when or if a condition subsequent arises. Essentially, it is a condition in a contract that triggers termination of the agreement and eliminates rights, responsibilities, and obligations of both parties.

Express Condition

A condition that is clearly stated in the language of a contract the meaning or intent of the contracted parties. An express condition spells out under which circumstances a specific obligation might be affected.

Constructive Condition

Constructive conditions are those that are not expressed or implied in the contract. A constructive condition is a fact or event not intended by the parties that is operative on grounds of fairness and justice.

Perfect Tender Rule

States that a buyer is permitted to reject goods shipped or delivered to it from a seller if the seller's tender of goods is not perfect. This is subject by the rules of the UCC.

Divisible Contract

A contract which is in its nature and purposes is susceptible of division and apportionment, having two or more parts in respect to matters and things contemplated and embraced by it, not necessarily dependent on each other nor intended by the parties so to be.

Wrongful Prevention

The prevention doctrine provides that a party who prevents performance of a contract may not complain of such nonperformance.

Waiver

A unilateral act of one person that results in the surrender of a legal right. The legal right may be...