BU231 Lecture Notes - Lecture 6: Condition Subsequent, Condition Precedent
Document Summary
If a contract is discharged then all the outstanding obligations of the contract are finished. Four ways to do this: perform all the obligations, agree to end the obligations, frustration, operation of law. Where the loss falls in frustration is not a focus of the class bc most contracts (esp. business and standard form) have a term in them which take this away. Agreeing in the actual contract that certain things will end the contract: condition precedent- happens or not contract. Must happen before contract goes into effect: condition subsequent- ends existing contract. Have contract until this happens; if it happens, it is over: option to terminate- not automatic. Nothing kills it, but you have the option. Without fault of either party the contractual obligation cannot be performed because and unanticipated event or circumstance makes performance impossible or radically different from that contemplated by parties. Impossible, purposeless, happened after contract entered into, not self-induced.
