What is a suspensive condition?

What is a suspensive condition?

A suspensive condition is a condition which suspends the rights and obligations (or the coming into operation of the entire agreement), until a certain future event occurs. Upon the occurrence of the event, the suspended part of the agreement (or the entire agreement) is brought to life.

What is Resolutory condition example?

RESOLUTORY CONDITION. On which has for its object, when accomplished, the revocation of the principal obligation; for example, I will sell you my crop of cotton, if my ship America does not arrive in the United States, within six months. My ship arrives in one month, my contract with you is revoked.

What is the difference between a suspensive and resolutive condition?

What is a Resolutive condition? Whereas the fulfillment of a suspensive condition breathes life into otherwise inoperative rights and obligations, the fulfillment of a resolutive condition ends the existence of rights and obligations (or the entire contract).

What is a suspensive condition Philippines?

A suspensive condition is a condition which (as the name suggests) suspends rights and obligations until the uncertain future event occurs. Upon the occurrence of the event, the suspended part of the contract (or indeed the entire contract) is brought to life.

Is a deposit a suspensive condition?

In most instances the payment of a deposit is not phrased as a suspensive condition, says Schalk van der Merwe from Rawson Properties Helderberg. “If the deposit is not paid timeously, the purchaser may be in breach and the seller may put him or her on terms to perform.”

Is subject to a suspensive condition?

When an agreement is subject to a suspensive condition, the contract comes into effect only once the condition is met. It is self-evident that such a suspensive condition is for the exclusive benefit of the purchaser who does not want to be bound to the agreement if he cannot procure the required bond finance.

What is suspensive time clause?

A contractual term that suspends the operation of the rights or duties of a contract until a specific moment arrives or a defined time period has elapsed (Schulze et al., 2016: 105).

What are the 2 kinds of condition?

There are three different forms of conditions. These are: Conditions precedent. Conditions concurrent, and.

What does it mean to waive a suspensive condition?

Waiver of Suspensive Condition In some instances, the purchaser can waive the suspensive condition, eliminating the need to fulfil it and the contract is legally valid and enforceable.

What is the effect of fulfillment of suspensive condition?

The main effect of the fulfilment of a suspensive condition is that the parties must perform their obligations as though the obligations had existed from the date the contract was signed.

What is a resolution condition?

What is a resolutive condition? In the case where a resolutive condition is stipulated in a contract, the contract is immediately binding after the parties thereto have signed it, and will remain binding subject to the future event stipulated in the condition being fulfilled.

What happens if a suspensive condition is not met?

Legally a suspensive condition can be described as a condition which suspends the operation or effect of one, or some, or all, of the obligations under a contract until the condition is fulfilled. If the condition is not fulfilled, then no contract comes into existence.

What is a suspensive condition in contract law?

A suspensive condition is a condition which suspends rights and obligations (or the validity of the entire contract) until a certain future event occurs. Upon the occurrence of the event, the suspended part of the contract (or indeed the entire contract) is brought to life.

Can a seller sell a property with suspensive conditions?

There is then no contract for the sale of the property between the two parties and the Seller can sell the property to another purchaser. Examples of suspensive conditions are obtaining bond approval before a certain date, or the sale of the Purchaser’s current property before a certain date.

Whereas the fulfillment of a suspensive condition breathes life into otherwise inoperative rights and obligations, the fulfillment of a resolutive condition ends the existence of rights and obligations (or the entire contract).

What happens if the suspensive condition is never fulfilled?

If the suspensive condition is never fulfilled, the suspended rights and obligations never come into existence and it will be as if the agreement was never concluded.