Contracts and Sales Multistate Bar Practice Exam

In what situation is a promisor's satisfaction a condition precedent?

1. When the contract involves mechanical fitness

2. When the contract is regarding personal taste or judgment

3. For all sales contracts regardless of circumstances

4. Only based on third-party satisfaction

The correct answer is: When the contract is regarding personal taste or judgment

A promisor's satisfaction being a condition precedent is most closely associated with contracts that relate to personal taste or judgment. In these types of agreements, the promisor’s satisfaction is integral to the performance of the contract because the subjective nature of personal taste cannot be objectively measured or evaluated. When a contract concerns personal preferences, the parties often agree that one party's satisfaction is necessary for the other party to proceed with performance. This means that the contract performance is contingent upon the individual’s satisfaction, making it a condition precedent. If the promisor is not satisfied, they are not obligated to fulfill their part of the agreement, as the satisfaction itself establishes whether the contract terms have been met. In contrast, situations involving mechanical fitness typically do not hinge on personal judgment; instead, they rely on objective standards that can be verified by an impartial third party. Sales contracts, as a general category, do not inherently establish satisfaction as a condition precedent, as they often include more objective measures of performance. Third-party satisfaction may impact specific contracts, but it doesn't pertain to the promisor's satisfaction in the same personal context. Thus, understanding this concept is essential as it highlights the difference between contracts that require subjective evaluation versus those that can be assessed with objective criteria.