Contracts Ii Conditions

Front 1

Andy tells Bonnie, “If you paint my house, I will pay you $1,000 on condition that 30 days have passed after you have finished painting.”



Is the passage of 30 days a condition to Andy’s duty to pay?

Back 1

No. This is a mere passage of time. It’s the day they agreed that payment is due, but it’s not a condition of payment.

Front 2

Bonnie tells Andy, “I promise to pay you $1,000 if you paint my house.” Andy begins to paint Bonnie’s house.



Is Andy’s completion of the painting a condition to Bonnie’s duty to pay?

Back 2

Yes. She made her duty to pay expressly conditioned on his painting the house.

Front 3

Andy purchases land from Bonnie, who is unable to get her husband to join her in signing the deed because they are engaged in divorce proceedings. Andy takes possession of the land under a deed signed by Bonnie alone. The written contract for the sale of land states that Andy agrees to pay (and he does pay) $10,000 to Bonnie now for the land, and he will pay her an additional $5,000 for the land “if, within one year of the date of the agreement, she delivers to him documentation that she is the sole owner of the land,” and she conveys the land to him as the sole owner.



Is the delivery of the documentation a condition to Andy’s duty to pay?

Back 3

Yes. His duty to pay anything more than the $10,000 is triggered only by her delivery of the documentation.

Front 4

Andy, the owner of a mining company, hires Bonnie, an engineer, to help reopen one of his mines for “$10,000, payable as soon as the mine is in successful operation.” $10,000 is a reasonable compensation for Bonnie’s services. Bonnie performs the required services, but the attempt to open the mine is unsuccessful and Andy abandons it.



Is the successful operation of the mine a condition to Andy’s duty to pay?

Back 4

Probably not. It’s unlikely that the court would interpret it this way because Bonnie did not assume the risk of the unsuccessful operation. This is probably a promise only, and not a condition. It’s likely that it only indicated the time of payment.

Front 5

Andy, the owner of a mining company, contracts with Bonnie, the owner of an untested experimental patented process, to help reopen one of his mines for $5,000 and an additional “$15,000 to be paid as soon as the mine is in successful operation.” $10,000 is a reasonable compensation for Bonnie’s services. Bonnie performs the required services, but because the process proves unsuccessful, Andy abandons the attempt to reopen the mine.



Is the successful operation of the mine a condition to Andy’s duty to pay?

Back 5

It is likely here that it would be a condition because Bonnie assumed the risk. Therefore, Andy’s duty would not be triggered.

Front 6

Bonnie’s insurance company insures Andy’s property under a policy that provides, “no recovery can be had if suit is not brought on the policy within two years after the loss.” Andy suffers a loss and lets 27 months pass before bringing suit against Bonnie’s company.



Is Andy’s failure to bring suit a condition that discharges Bonnie’s company’s duty to pay?

Back 6

Yes. Although it had a duty to pay, the failure to bring suit within the two year period discharged Bonnie’s duty to pay.

Front 7

Andy is a partner in a medical practice. The partnership agreement provides, “Any partner may withdraw from the partnership on three months’ written notice to the executive partnership committee, but in the event that the executive partnership committee request that withdrawing partner revoke the notice of withdrawal, and he or she fails to revoke that notice, the withdrawing partner must not practice medicine within a 25-mile radius for a period of 2 years.” Andy submits his notice of withdrawal to the executive committee, but the committee does not request that he revoke his withdrawal.



Is Andy not prohibited from practicing medicine within a 25-mile period for 2 years?

Back 7

No. His duty to comply with that provision was only triggered on condition that the committee request his revocation. Because the committee failed to do so, the duty was not triggered.

Front 8

Andy and Bonnie enter into a written contract for the sale of Bonnie’s land to Andy. The contract states, “This contract is conditional on approval by X Bank of Andy’s pending mortgage application.”



If the bank approves Andy’s mortgage application, is Andy obligated to buy the property?

Back 8

Yes. The event triggers his duty to buy.

Front 9

Bonnie gives Andy $10,000 to use in perfecting an invention, and Andy promises to repay the money “only out of royalties received during his lifetime from the sale of the patent rights” for that invention. In spite of his diligent efforts, Andy is unable to perfect his invention and obtain a patent, so no royalties are received. Andy dies.



Does Bonnie have a valid claim against Andy’s estate for the repayment of the loan?

Back 9

No. The receipt of royalties from the sale was a condition to Andy’s duty to repay. Andy’s duty was never triggered here because the event did not occur.