condition

Definition 1

General: Uncertain future act or event, the occurrence of which determines the existence or extent of an interest or right, or liability or obligation; or initiates, halts, or terminates the performance of a duty.

Definition 2

Contracting: Major term (central point) or the 'essence' of a contract. A condition (1) invests or divests the rights and duties of the parties to the contract, or (2) stipulates that the occurrence or non-occurrence of a certain event creates or terminates a contract. An actual or stipulated condition is called an express condition or condition in deed, and a condition deemed to be automatically present is called an implied condition or condition in law. Breach of a condition constitutes breach of the contract, and entitles the aggrieved-party to call for setting aside (rescission) of the contract, and to claim for damages. A minor term (incidental point) of the contract is called a 'warranty,' breach of which may call for damages as compensation but not rescission of the contract. See also condition precedent, condition subsequent, innominate term, and intermediate term.