1. Law: An uncertain future act or event, the occurrence of which determines the existence or extent of an interest orright, or liability or obligation; or which initiates, halts, or terminates the performance of a duty.
2.
Contracts: The central instrument in 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 nonoccurrence 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 orcondition 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 fordamages. 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 alsocondition precedent, condition subsequent, innominate term, and intermediate term.
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