CONDITION - Black's Law Dictionary

What is CONDITION? Definition of CONDITION in Black's Law Dictionary - Legal dictionary - Glossary of legal terms.

A future and  uncertain event upon the happening of which  is made to depend  the existence of an obligation, or that  which subordinates the existence of liability under  a contract to a certain future event. Standard Surety & Casualty Co. v. Wynn,  Tex.Civ.App., 172 S.W.2d 789, 792; Barber Asphalt Paving Co. v. St. Louis Cypress Co., 121 La. 152, 46 So. 193, 197.

Civil  Law

The  rank, situation, or degree of a particular person in some  one of the different orders of society.

An agreement or stipulation in regard to some uncertain  future event, not of the essential  nature of the transaction, but annexed to it by the parties, providing for  a change or modification of their  legal  relations upon  its occurrence. Mackeld. Rom.  Law,  § 184.

Classification. Conditions are of the following several  kinds:

The casual condition is that which  depends on chance, and  is in no way  in the power either of the  creditor or of the  debtor. Civ.Code La.  art. 2023.

A mixed condition is one that  depends at the same time  on the  will  of one  of the  parties and on  the  will  of a third person, or on  the  will  of one  of the  parties and  also on a casual event. Civ.Code La. art. 2025.

The potestative condition is that which  makes the execution of the agreement  depend on an event which it is in the  power of the  one  or the  other of the  contracting parties to bring about or to hinder. Civ.Code La. art. 2024.

A resolutory or dissolving  condition is that which, when  accomplished, operates the revocation of the obligation, placing  matters  in the same state as though the  obligation had  not  existed. It does  not suspend the execution of the obligation.  It only  obliges the creditor to restore what he has received in case  the event  provided for in the condition takes place. Civ.Code La. art. 2045; Moss v. Smoker, 2 La.Ann. 991.

A suspensive condition is that which  depends, either  on a future  and uncertain event,  or on an event  which  has actually taken  place,  without its being yet  known to the  parties. In the  former case,  the obligation cannot be executed till after the event;  in the latter,  the obligation has its effect from the day on which  it was contracted, but it cannot be enforced until  the event  be known. Civ.Code La. art. 2043;  New Orleans v. Railroad Co., 18 S.Ct. 875, 171 U.S. 312, 43 L.Ed. 178; Moss v. Smoker,  2 La.Ann.  991. A condition which prevents a contract from  going into  operation until it has been fulfilled.

Common Law

The  rank, situation, or degree of a particular person in some  one of the different orders of society; or his  status or situation, considered as a juridical person, arising from  positive law or the institutions of society.  Thill v. Pohlman, 76 Iowa, 638, 41 N.W. 385.

A clause  in a contract or agreement which  has for its object to suspend, rescind, or modify the principal obligation, or, in case  of a will,  to suspend,  revoke, or modify the devise or bequest; a qualification, restriction, or limitation modifying or destroying the  original act  with which it is connected; an  event, fact, or  the like that is necessary  to the occurrence  of some other, though not its cause; a prerequisite. Towle v. Remsen, 70 N.Y. 303.

A modus or quality annexed by him that hath an estate,  or interest  or right to the same,  where by an estate,  etc., may either be defeated, enlarged, or created upon  an uncertain event. Co.Litt. 201a.

A qualification or restriction annexed to a conveyance of lands, whereby it is provided that  in case a particular event  does or does not happen, or in case the grantor  or grantee  does or omits to do a particular act, an estate  shall commence, be enlarged, or be defeated. Anderson v. Palladine, 39 Cal.App. 256, 178 P. 553, 554.

An "estate on condition"  arises where an estate is granted,  either in fee simple or otherwise, with  an express qualification annexed, whereby the estate  granted shall either commence, be enlarged, or be defeated, upon performance or breach of such  qualification or condition. Hall v. Quinn, 190 N.C. 326, 130 S.E. 18, 20. Moe v. Gier,116 Cal.App. 403, 2 P.2d 852, 855.

In insurance  parlance,  the printed conditions  on the inside of the policy  which  serve generally as a limitation of risk or of liability  or impose  various  conditions requiring compliance by the insured. Federal Intermediate Credit Bank of Baltimore v. Globe & Rutgers  Fire Ins. Co., D.C. Md., 7 F.Supp. 56, 68.

Mode or state  of being; state  or situation; essential quality; property; attribute. Consolidated Arizona Smelting Co. v. Egich, 22 Ariz.  543, 199 P. 132, 134.

Classification. The different kinds of conditions known to the common law may be arranged and described as follows:

Express and implied conditions are also called  by the older writers,  respectively, conditions in deed (or in fact, the Law French  term being  conditions en fait)  and conditions in law. Co. Litt. 201a.

They  are either express or implied, the former when  incorporated in express terms  in the deed, contract, lease, or grant; the latter, when inferred or presumed by law,  from  the nature of the transaction or the conduct of the parties,  to have been  tacitly understood between them  as a part of the  agreement, though not  expressly men- tioned.  2 Crabb,  Real Prop. p. 792; Bract.  fol. 47; Civ.Code La. art. 2026; Raley v. Umatilla  County, 15 Or. 172, 13 P. 890, 3 Am.St.Rep. 142.

They are possible or impossible; the  former when  they admit  of performance in the ordinary course of events; the  latter when it is contrary to the course  of nature  or human  limitations that they should ever be performed.

They are lawful or unlawful; the former  when their character is not  in violation of any  rule, principle, or policy of law;  the latter when they are such as the law will not allow to be made.

They are  consistent or repugnant; the former when  they are in harmony and concord with the other parts of the  transaction; the  latter when they contradict, annul, or neutralize the main purpose  of the contract. Repugnant conditions are also called  "insensible."

They are  affirmative or negative; the former being a condition  which consists in doing a thing; as provided that  the lessee shall  pay rent,  etc., and the latter being a condition  which consists  in not  doing a thing; as provided that  the  lessee shall not alien, etc. Shep. Touch. 118.

They are precedent or subsequent. A condition precedent is one which must  happen or be performed before the estate to which it is annexed can vest  or be enlarged; or it is one which is to be performed before  some right dependent thereon accrues, or some act dependent  thereon is performed.  Federal  Land Bank of Louisville v. Luckenbill, 213 Ind. 616, 13 N.E.2d  531, 533. A "condition precedent" is one that  is to be performed before the agreement  becomes effective, and which calls for the happening of some event  or the performance of some  act after the terms  of the contract have been agreed on, before the  contract shall be binding  on the parties.  Rogers  v. Maloney, 85 Or. 61, 165 P. 357, 358; Mercer-Lincoln Pine Knob Oil Co. v. Pruitt, 191 Ky. 207, 229 S.W. 374. A condition subsequent is one annexed to an es- tate already vested,  by the performance of which such estate is kept and continued,  and by the failure or non performance of which it is defeated; or it is a condition referring to a future event, upon  the happening of which the obligation becomes  no longer  binding upon the other party,  if he chooses to avail  himself of the condition. Co. Litt.  201;  Carroll v. Carroll's Ex'r,  248  Ky. 386, 58 S.W.2d 670, 672.

Conditions may also be positive (requiring that a specified event shall happen  or an act be done) and restrictive or  negative, the latter  being  such as impose an obligation not  to do a particular thing,  as, that a lessee  shall  not alien  or sublet or commit  waste, or the like. Shep. Touch.  118.

They may  be single, copulative, or disjunctive. Those  of the first kind require  the performance of one specified  thing only; those of the second  kind require the performance of divers  acts or things; those of the third  kind  require the performance of one of several  things.  Shep. Touch.  118.

Conditions may also be independent, dependent, or mutual. They  belong to the first  class when each of the  two  conditions must be performed without any reference to the other;  to the second class  when the performance of one condition is not  obligatory until the  actual performance of the  other; and  to the  third class when neither party need perform his condition unless  the other is ready  and willing  to perform his, or, in other words, when the mutual covenants go to the whole consideration on both sides and each is precedent to the other.  Huggins v. Daley, W.Va., 99 609, 40 C.C.A. 12, 48 L.R.A. 320.

The  following varieties may  also  be noted: A. condition  collateral  is one requiring the performance  of a collateral act having no necessary relation to the  main subject of the  agreement. A compulsory condition is one which  expressly requires a thing  to be done,  as, that  a lessee shall pay a specified sum of money  on a certain  day or his lease shall  be void.  Shep. Touch. 118.  Concurrent conditions are those  which  are mutually dependent and  are to be performed at the same time.  Milwaukee Land  Co. v. Ruesink, 50 Mont. 489, 148 P. 396, 401. A condition inherent is one annexed to the  rent reserved out of the  land whereof the estate is made, or rather, to the estate in the land,  in respect of rent.  Shep.  Touch. 118.

French Law

The  following peculiar distinctions are made: (1) A condition is easuelle when  it depends on a chance or hazard; (2) a condition is potestative when it depends on the accomplishment of something which is in the  power of the  party to accomplish; (3)  a condition is mixte when it depends partly on the will  of the party and  partly on  the  will  of others; (4)  a condition is  suspensive when it is a future and  uncertain event, or present but unknown event, upon  which an obligation takes or fails to take effect; (5)  a condition is resolutoire when it is the  event which undoes an obligation which has already had  effect as such. Brown.

Synonyms  Distinguished

A "condition" is to be  distinguished from a limitation, in that  the latter  may  be to or for the benefit of a stranger, who may then  take advantage of its determination, while  only the grantor, or those  who stand  in his place,  can take advantage of a condition. Hoselton v. Hoselton, 166 Mo. 182,  65 S.W.  1005; and in that  a limitation ends  the estate without entry  or claim, which is not true of a condition. It also differs from a conditional limitation. In determining whether, in the  case of estates greater than estates for years, the language constitutes a "condition" or a "conditional limitation," the rule applied  is that, where an estate is so expressly limited by the words of its creation  that it cannot  endure  for any longer time  than  until  the condition happens on which the estate is to fail,  this  is limitation, but when the estate  is expressly granted  on condition in deed,  the law permits it to endure beyond the time of the  contingency happening, unless the grantor takes advantage of the breach of condition,  by making entry. Lonas v. Silver, 195  N.Y. S. 214, 215, 201 App.Div. 383; Yarbrough v. Yarbrough,  151 Tenn. 221, 269 S.W. 36, 38. It differs also from a covenant, which can be made by either grantor or grantee, while only the  grantor can make a condition (Co. Litt. 70) ; De Grasse  v. Verona Mining Co., 185 Mich. 514, 152 N.W. 242, 246; The chief  distinction between a condition subsequent in a deed  and  a covenant pertains to the remedy in event  of breach, which, in the former case, subjects the  estate to a forfeiture, and  in the latter  is merely  a ground for recovery of damages. Bartell  v. Senger,  160 Md. 685, 155 A. 174, A charge is a devise of land with a bequest out of the subject-matter, and a charge upon the devisee personally, in respect of the  estate devised, gives him  an estate on condition. A condition also  differs from a remainder; for, while the former may  operate to defeat the estate before its natural termination, the latter cannot take effect until the  completion of the  preceding estate.

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