Conditions

Front 1

Conditions steps

Back 1

1. Identify the duty on the part of the D that the P wants the court to enforce
2. Determine whether the duty is conditional
3. Identify all possible conditions to D's duty of immediate performance
4. Determine what happened to the condition - strictly fulfilled ->conditional duty becomes one of immediate performance
simply failed ->conditional duty never becomes one of immediate performance
excused->conditional duty becomes a duty of immediate performance

Front 2

Step 1

Back 2

1. Identify the duty on the part of the D that the P wants the court to enforce

Front 3

Step 2

Back 3

2. Determine whether the duty is conditional - if conditional go to step 3
if unconditional, then duty is duty of immediate performance

Front 4

Step 3 - define condition

Back 4

3. ID all possible conditions to D's duty of immediate performance.
condition - any uncertain fact or event other than the mere passage of time that must happen for D's duty to become a duty of immediate performance

Front 5

Step 3.

Back 5

Determine the method of creation for the condition
Express (this means a manifested intent that A's duty depends on event "B", the other person's performance, not just a forceful statement of A's duty. 5 factors:
1. Wording: "provided that", subject to, unless, contingent upon, on the condition that. if wording not there, look for other manifestations of intent on behalf of the parties for this to be an express condition.
2. purpose of provision
3. materiality or importance of the fact or event
4. source of the language: the party who wrote the document is talking about what they will do (this is a duty), if they are talking about what other party will do (likely a condition).
5. presumption of duty - if all else fails, courts will assume duty

Constructive conditions: exists when the court sees a normal bargained-for exchange of performances. This way if one condition fails, then the duty does not become a duty of immediate performance.
Often the result of reading in Constructive Conditions of Exchange is the creation of Alternating Promissory conditions.
EXCEPTIONS - Aleatory Ks (Ks to assume the risk)- casualty insurance policies, etc - courts won't read in constructive conditions bc no bargained for exchange here.

Front 6

Step 3.

Back 6

Determine the legal effect of the condition (affects burden of proof)
Condition precedent - burden on P to show that the condition was fulfilled.
Condition concurrent - burden on P (both parties perform at same time)
Condition subsequent (rare) burden on D to show that the P did not make a demand for D to comply with duty

Front 7

Step 4.

Back 7

Determine what happened to the condition.
Strictly fulfilled ->conditional duty becomes duty of immediate performance.
See table of conditions of satisfaction.
Conditions concurrent - can be fulfilled with tender, you have physical ability to tender performance and offer to perform if the other performs.
Condition of demand as a condition precedent
Generally promisee must make demand to activate promisor's duty: ie car accident, you must tell insurance co.
Exception - if promisor is under an otherwise unconditional duty to pay a sum of money on demand, the promisee can sue to collect without first making demand.