Distinguish between conditions and covenants.
What will be an ideal response?
A covenant is an unconditional promise to perform. Nonperformance of a covenant is a breach of contract that gives the other party the right to sue.
The majority of provisions in contracts are covenants. A conditional promise (or qualified promise) is not as definite as a covenant. The promisor's duty to perform or not perform arises only if the condition does or does not occur. It becomes a covenant if the condition is met. Generally, contract language such as if, on condition that, provided that, when after, and as soon as indicates a condition. A single contract may contain numerous conditions that trigger or excuse performance. Two types of conditions are:
1. Condition precedent. If a contract requires the occurrence (or nonoccurrence) of an event before a party is obligated to perform a contractual duty, this is a condition precedent. The happening (or non-happening) of the event triggers the contract or duty of performance. If the event does not occur, no duty to perform the contract arises because there is a failure of condition.
2. Condition subsequent. A condition subsequent exists when there is a condition in a contract that provides that the occurrence or nonoccurrence of a specific event automatically excuses the performance of an existing duty to perform. That is, failure to meet the condition subsequent relieves the other party from obligation under the contract.
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