Contracts and Sales Multistate Bar Practice Exam

What type of condition occurs before a party's immediate performance duty arises?

1. Condition precedent

2. Condition concurrent

3. Condition subsequent

4. Constructive condition

The correct answer is: Condition precedent

A condition precedent is a type of condition that must be satisfied before a party’s duty to perform arises. In contract law, conditions precedent set the stage for performance, meaning that the performance of one party is contingent upon the occurrence of a certain event or action. For instance, in a contract for the sale of a house, the buyer's duty to pay the purchase price may be conditioned on the seller delivering a clear title. Until the condition is fulfilled, the obligation to perform does not come into effect. This contrasts with conditions concurrent, which require mutual performance to occur simultaneously, and conditions subsequent, which allow a party's duty to be discharged upon the occurrence of a specified event after performance has begun. Constructive conditions, on the other hand, are those that the law imposes to ensure fairness, often related to the timing or quality of performance, rather than being explicitly stated by the parties. Understanding these distinctions helps clarify how obligations are structured in contracts.