What is a Resolutive condition in a contract?

What is a Resolutive condition in a contract?

A resolutive condition is an arrangement between the parties that the agreement of sale will terminate on the happening of a certain future event. Unlike with a suspensive condition, the agreement is immediately binding with all the rights and obligations contained therein from the day of conclusion thereof.

What is a suspensive condition in a contract?

Legally a suspensive condition can be described as a condition which suspends the operation or effect of one, or some, or all, of the obligations under a contract until the condition is fulfilled. If the condition is not fulfilled, then no contract comes into existence.

What is suspensive and Resolutory condition?

A conditional obligation is one dependent on an uncertain event. If the obligation may not be enforced until the uncertain event occurs, the condition is suspensive. If the obligation may be immediately enforced but will come to an end when the uncertain event occurs, the condition is resolutory.

What are examples of Resolutive condition?

A resolutive condition is an arrangement between the parties that an agreement will end in the event of certain circumstances. Example: the contract can be terminated when a licence for use of a catering establishment is withdrawn.

What is a Potestative condition explain by giving example?

A potestative condition is a condition, the fulfillment of which depends upon the sole will of the debtor, in which case, the conditional obligation is void.

Is suspensive condition valid?

If the suspensive condition depends upon chance or upon the will of a third person, the obligation subject to it is valid.

What is the effect on a contact if it contains a Resolutive condition?

Resolutive Condition: When dealing with a resolutive condition, the contract is immediately binding with all rights and obligations coming into existence from day one of the contract and there is no suspension of these rights and obligations.

What happens if a condition precedent is not fulfilled?

If you fail to satisfy a condition precedent to your contract, then it may allow the defendant (the breaching party) to shield themselves from liability — the defendant can reasonably argue that they did not actually commit breach by violating any contractual obligations.

What is Potestative condition example?

A potestative condition is that which is in the power of the person in whose favor it is contracted. E.g., if I engage to give my neighbor a sum of money, in case he cuts down a tree which obstructs my prospect.

What is the effect of non compliance with a Resolutory condition?

A resolutory condition is also implied in all commutative contracts. It takes effect in case either of the parties does not comply with his/her engagements, in which event the party complaining of the breach may sue for dissolution of the contract with damages.

Can a condition precedent be waived?

The fact that the conduct or action of a third party is involved in the proper performance of a condition does not on that ground alone make it a “true condition precedent” which cannot be waived.