Legal Definitions - lawful condition

LAWFUL CONDITION

A lawful condition is an uncertain event that determines the existence or extent of an obligation or liability in a contract. It can be a future act or event that triggers or negates a duty to perform a promised action. A lawful condition can be fulfilled without violating the law.

• If Jones promises to pay Smith $500 for repairing a car, Smith's failure to repair the car (an implied or constructive condition) relieves Jones of the promise to pay.
• An insurance company promises to pay £10,000 to an insured person if his house is destroyed by fire; the destruction of the house by fire is a condition of the insurer's promise to pay, but neither party promises to burn the house.

The first example illustrates how a lawful condition can relieve a party of their obligation to perform a promised action. In this case, Jones promised to pay Smith for repairing a car, but the condition of the car being repaired was not fulfilled, so Jones is not obligated to pay. The second example shows how a lawful condition can be a part of an insurance contract, where the destruction of the house by fire is a condition for the insurer's promise to pay. If the condition is fulfilled