Which option represents a condition precedent to the contract?

Which option represents a condition precedent to the contract?

• A. Mortgage offer
• B. A warranty
• C. The completion date
• D. A restriction

Answer: (B)

A condition precedent is something that must happen before the contract takes effect or before the parties’ obligations arise. A warranty can be framed as a condition precedent in a property contract, meaning the contract only binds if the seller’s assurances about the property prove true. If those warranties cannot be met, the contract may not become operative. This protects the buyer by making the truth of the facts about the property a prerequisite to formation. The other options don’t fit as conditions precedent: a mortgage offer is usually a condition to completion rather than to the contract itself; the completion date is merely a timing term; and a restriction is a title issue, not a prerequisite that must be satisfied before the contract binds.

A condition precedent is something that must happen before the contract takes effect or before the parties’ obligations arise. A warranty can be framed as a condition precedent in a property contract, meaning the contract only binds if the seller’s assurances about the property prove true. If those warranties cannot be met, the contract may not become operative. This protects the buyer by making the truth of the facts about the property a prerequisite to formation. The other options don’t fit as conditions precedent: a mortgage offer is usually a condition to completion rather than to the contract itself; the completion date is merely a timing term; and a restriction is a title issue, not a prerequisite that must be satisfied before the contract binds.