We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
Resolutory Condition: Key Insights into Its Legal Implications
Definition & Meaning
A resolutory condition is a legal term that describes a specific type of condition in a contract. When a resolutory condition is fulfilled, it ends an existing obligation between the parties involved. This means that the parties return to their original positions as if the contract had never been in effect. Resolutory conditions are often found in commutative contracts, which are agreements where both parties exchange something of value. If one party fails to meet their obligations, the other party can seek to dissolve the contract and may also claim damages for the breach.
Table of content
Legal Use & context
Resolutory conditions are primarily used in civil law, particularly in contract law. They are relevant in situations where a contract is enforceable but may be terminated based on specific conditions. Users can manage related legal matters through resources like US Legal Forms, which provides templates for contracts and legal documents that incorporate resolutory conditions.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A homeowner contracts a contractor to build a deck, with the condition that the project must be completed by a specific date. If the contractor fails to meet this deadline, the homeowner can terminate the contract and seek damages for any losses incurred.
Example 2: A business enters into a lease agreement with a resolutory condition that allows termination if the tenant fails to pay rent for two consecutive months. If this condition is met, the landlord can end the lease and reclaim the property. (hypothetical example)
State-by-state differences
Examples of state differences (not exhaustive):
State
Key Differences
California
Allows for specific performance as a remedy in some contracts.
Texas
Emphasizes the need for clear conditions to enforce resolutory terms.
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Difference
Suspensive Condition
A condition that suspends the obligation until fulfilled.
Unlike a resolutory condition, it does not terminate an obligation but delays it.
Condition Precedent
A condition that must be met before a contract becomes effective.
It differs from a resolutory condition, which ends an obligation rather than starting one.
Common misunderstandings
What to do if this term applies to you
If you believe a resolutory condition applies to your contract, first review the terms to confirm its presence. If the condition has been met, you may need to take steps to dissolve the contract and seek damages. Consider using US Legal Forms to access templates that can help you draft the necessary documents. If the situation is complex or contentious, consulting a legal professional is advisable.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.