Title

IV.6.10 - Conditions

Content

No. IV.6.10 - Conditions

(a) A condition is a term in a contract, to the effect that on the occurrence, or non-occurrence of an uncertain event, act, or forbearance, a right shall arise, or cease to exist.

(b) A condition, on the occurrence of which a right is to arise, is called a "condition precedent" (or "suspensive"); a condition on the occurrence of which a right is to cease to exist, is called a "condition subsequent" (or "resolutive").

Commentary

The Principle deals with the two kinds of contractual conditions. While a condition precedent is agreed upon by the parties as a condition on the occurrence of which a contractual right is to arise, a condition subsequent is a condition on the occurrence of which a right is to cease to exist.

References

Doctrine

Beale, H. G.; Chitty, Joseph et al., Chitty on Contracts, Vol. 1, London 2004.Hutchison, Dale (Ed.) / Pretorius, Chris (Ed.),  The Law of Contract in South Africa, Oxford University Press Southern Africa, 2018Jenks, Edward et al., A Digest of English Civil Law, London, Sydney, Calcutta, Winnipeg, Wellington 1921.MacQueen, Hector L./Thomson, Joe, Contract Law in Scotland, Fourth Edition 2016

National Legislation

Bürgerliches Gesetzbuch - German Civil CodeContract Law of the People's Republic of ChinaEthiopian Civil CodeFrench Civil Code 2016Indonesian Civil Code (excerpts)Italian Codice CivileJapanese Civil Code 2020Act No. 89 of 1896Amendment of Act No. 44 of 2017Louisiana Civil Code 2015Philippines Republic Act 386 (Civil Code)Saudi Arabia Civil Transactions Law - Royal Decree No. M/191, June 18, 2023, official translation

Principles / Restatements

Principles of European Contract Law - PECL

Contract Clauses

1. Examples of Condition PrecedentEmployment Contract