What is a condition precedent?

A condition precedent is a legal requirement that must be met before a contract can be enforced. In North Dakota, a condition precedent is usually set out in the contract. For example, if a person agrees to buy a car from a dealer, the dealer might state in the contract that the buyer must pay a portion of the purchase price as a condition precedent to the contract being valid. In order for a condition precedent to be valid, it must be clear, certain, and reasonable. A court will not enforce a condition precedent that is ambiguous, uncertain, or too burdensome. For example, a condition that requires the buyer to pay the full purchase price of the car within one day of signing a contract is probably too onerous for the court to enforce. Conditions precedent are important because they set forth the terms of the contract that must be met before the contract can be enforced. This protects both parties by ensuring that the other party is doing what they initially agreed to do. If either party fails to fulfill the condition precedent, then the contract is void and unenforceable.

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