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Summary 10 Conditions, Time Clauses _ Suppositions

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Summary of 2 pages for the course Mercantile Law 193 at SUN (Merc Law summaries)

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10. Conditions, Time Clauses &
Suppositions


Conditions
- Uncertain future event to which an obligation can be subjected.
- Requirements is that it should relate to future event, contain element of
uncertainty, refer to lawful event & not contrary to nature of obligation.

Classification
- Suspensive / Resolutive
o Suspensive: suspend operation of obligation until fulfilment of
condition.
o Resolutive: obligation comes into operation immediately, but dissolves
when condition is fulfilled.
o May also be classified according to extent to which fulfilment of
obligation may be influenced by parties.
- Potestative / Casual / Mixed
o Potestative: imply one of parties has some control over fulfilment of
condition.
o Casual: completely outside control of parties.
o Mixed: contain elements of both casualty & control.
- Positive / negative
o Positive: apply where something positive has to happen for fulfilment.
o Negative: condition fulfils when event should not happen.
- Categories interact w/each other & can operate in combination.

Operation
- Fulfils if
o Condition is positive & event happens.
o Condition is negative & is certain that event is not going to happen.
- Fails if
o Condition is positive & it is certain that event is not going to happen.
o Condition is negative & it is certain event is going to happen.
- If one of parties interferes w/fulfilment of condition by wilfully preventing its
fulfilment law will regulate position as if interference did not take place through
doctrine of fictional fulfilment of conditions.
- Condition must be fulfilled w/in reasonable time else regarded as having
failed.

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