Contracts and Sales Multistate Bar Practice Exam

What does a constructive condition of co-operation imply?

1. One party may perform without regard to the other

2. Performance is conditioned on the other party’s cooperation

3. Both parties are independent of each other

4. Only written notice of performance is required

The correct answer is: Performance is conditioned on the other party’s cooperation

The concept of constructive conditions of cooperation reflects the idea that for one party to fulfill their performance under a contract, the cooperation of the other party is essential. This means that a party's performance is contingent upon the other party taking necessary actions that enable or facilitate that performance. Essentially, it recognizes that certain obligations cannot be met unless both parties work together in some capacity. For instance, in a construction contract, a builder may need the property owner to provide access to the land before they can start their work. In this scenario, the builder's obligation to perform is effectively conditioned on the property owner's cooperation. If the owner fails to provide access, the builder would not necessarily be in breach of their contract for not starting the work, because the constructive condition of cooperation has not been satisfied. In contrast, the incorrect choice suggesting that one party may perform without regard to the other overlooks the fundamental interdependence inherent in many contractual relationships, where the actions of one party directly influence the obligations of another. Similarly, the idea that both parties are independent from each other fails to recognize instances where cooperation is needed for successful performance. Likewise, merely requiring written notice of performance oversimplifies the dynamics of contractual obligations and does not address the underlying need for cooperation inherent in the