suspensive condition

Acceptance may also be a suspensive condition in certain contracts.

It is fair to say that the preponderance of suspensive conditions are positive.

The nature of the contract may affect the rights of the parties when there is a suspensive condition.

A suspensive condition is one where there is no duty to pay unless the event happens.

Contingencies that suspend the contract until certain events occur are known as "suspensive conditions".

The argument is not of a purely legal nature and there are no suspensive conditions to be interpreted in legal terms.

In the agreement was a suspensive condition which permitted liquidation only the shareholders of Macduff agreed to it.

The agreement is subject to a suspensive condition: If Smith's crop does not materialise, there is no sale.

A suspensive condition is sometimes found in commercial transactions to the effect that the transaction will be dependent upon the seller's approval of the buyer's financial stability.

Usually a suspensive condition must be fulfilled within a reasonable period of time, although sometimes the parties will attach a period of time to the condition.

The Appellate Division ruled that such obstruction was unlawful, and therefore that there was fictional fulfillment of the suspensive condition.

This lease, however, was subject to a suspensive condition, clause 15(i): The lease was "to be confirmed by the lessor within 14 days after registration in the lessor's name."

This very same Parliament approved the customs union with Turkey some years ago, and also 14 to 15 billion francs in European aid until the year 2000, without setting even the least suspensive conditions.

JCI accordingly bought up shares in Macduff, until it was the majority shareholder, and then voted against liquidation, deliberately obstructing the possibility of the occurrence of the suspensive condition in the contract.

Since this is contrary to the common-law position (and, indeed, to logic), the significant types of contracts with the character of a sale, and subject to suspensive conditions, have been covered by legislative amendments, so that the anomaly does not apply.

Some argue that these are sales subject to a suspensive condition: Since the sale is subject to the examination and approval of the buyer, the operation of the sale is suspended until the buyer's approval has been expressed.

MacDuff & Co Ltd (in Liquidation) v Johannesburg Consolidated Investment Co Ltd is the leading case in South African contract law on the issue of fictional fulfilment of suspensive conditions.

The court held further that the certificate of completion signified the coming into existence of a right to claim payment of the retention money subject to a suspensive condition, namely the repair of any defects which might manifest themselves during the retention period.

Accordingly, by virtue of the cession of 31 December 1984, the contractor's right to claim payment of the retention money when it came into being on 27 August 1990 (even though that right was subject to a suspensive condition), had been transferred to the bank.

It has been held that, where an agreement of purchase and sale has been entered into subject to a suspensive condition, no contract of sale is then and there established; it develops into one of sale only on fulfilment of the condition.

As the rights of the bank, as a third party in relation to the lease, were not prejudiced by the retroactive operation of the lease brought about by the fulfilment of the suspensive condition, the consequences of a lease subsequent in time to the mortgage bond followed.

It is apparently also now accepted, when a suspensive condition is fulfilled, that the contract and the parties' mutual rights "relate back to, and are deemed to have been in force from, the date of the agreement and not from the date of the fulfilment of the condition, ie ex tunc."

Even though there was a clause in the contract stating the subcontractors would be paid on the final payment by the owner to the general contractor, the payment provision did not constitute a suspensive condition that negated any obligation on the part of the general contractor until they were paid by the owner.

According to this case law, the announcement of the competition is considered as a proposal to conclude an individual contract of employment and the participation in the competition as an acceptance of this proposal, the conclusion of the contract being subject to the suspensive condition of the candidate's success in passing the competitive examination.

The legal effect of suspensive conditions in the law of sale is a matter of some controversy, but effectively the position is this: Unlike other contracts, a contract subject to a suspensive condition only becomes a contract of sale once the condition is fulfilled.