Restatement 2d of Contracts 159: Understanding the Basics
Restatements of law are a source of authority in American law that summarizes the legal principles on a given subject matter. Restatement 2d of Contracts is an influential source of law that deals with contract law in the United States. It was published by the American Law Institute, and it has been adopted in whole or in part by most states in the country.
Restatement 2d of Contracts 159 deals with the concept of a condition precedent. A condition precedent is an event that must occur before a contractual obligation is triggered. This means that the obligation only becomes enforceable once the condition is met. Restatement 2d of Contracts 159 lays out the criteria for what constitutes a condition precedent and the effect of non-occurrence of the condition.
According to Restatement 2d of Contracts 159, for a term to be classified as a condition precedent, three factors must be present. The first factor is that the event must be given as a condition in the contract. This means that the contract must explicitly state that the obligation is conditioned on the occurrence of a specific event. The second factor is that the event must be uncertain. This means that there must be some doubt about whether the event will occur. The third factor is that the event must not be within the control of the party whose performance is required. This means that the event must be beyond the control of the party to ensure that the risk of non-occurrence is not shifted to that party.
If the event does not occur, the obligation is not triggered, and the party whose performance was required is not liable for breach of the contract. Restatement 2d of Contracts 159 also provides for situations where the non-occurrence of a condition precedent is due to the fault of one of the parties. In such a case, the aggrieved party may have a remedy for breach of the duty to fulfill the condition precedent.
In conclusion, Restatement 2d of Contracts 159 is an essential source of law for contract law in the United States. It provides a framework for understanding the concept of a condition precedent and the effect of non-occurrence. As a professional, it is important to understand legal concepts such as Restatement 2d of Contracts 159 to ensure that legal content is accurate, clear, and informative.