Constructive Condition

In one sentence

A requirement implied by law that must be satisfied before a party's duty to perform arises.

Plain English

A constructive condition is a requirement that the law reads into a contract even if the parties didn't write it down. It's different from an express condition, which the parties explicitly state. For example, in a contract to buy a house, the law implies a constructive condition that the buyer will get financing—if the buyer can't get a loan through no fault of their own, they may not be in breach. Constructive conditions ensure fairness by requiring that certain things happen (or be attempted) before one party must perform.

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Example

A contractor agrees to build a deck for a homeowner for $10,000. The contract doesn't say so, but the law implies a constructive condition that the homeowner will provide access to the property. If the homeowner locks the contractor out and prevents work, the contractor's duty to build is excused because the constructive condition has failed.

Used in a sentence

“The constructive condition of good faith required both parties to cooperate in performing the contract.”

Related terms

Actual Condition

The real state of something at a specific moment in time.

Performance

The act of doing what a contract requires, such as delivering goods or paying money.

Discharge of Contract

The release of both parties from their contractual obligations.

Termination for Cause

Ending a contract due to the other party's breach or serious misconduct.

Modification

A change to a contract made by the parties after it's already in effect.

Implied Contract

A contract where the parties' intent to be bound is shown by conduct rather than explicit words.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.