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Condition
 

 

A term in a contract the nonfulfilment of which will entitle the plaintiff to repudiate the contract and treat it as if it had never existed, i .e. demand return of any payment made. In order to be classified as a condition the term must not be merely incidental to the principal objective of the agreement but must be vital to its proper rformance. It should also refer to a matter of fact, not to an opinion given, and should be distinguished from a warranty. There are two subdivisions of conditions: the condition precedent and the condition subsequent.

Condition precedent

A condition which must be fulfilled before an obligation shall arise.

Condition subsequent

A condition which if not fulfilled cancels an obligation or liability.

 

Reference: The Penguin Business Dictionary, 3rd edt.