Oregon Construction Contractors (CCB) Practice Test

If a condition precedent does not occur, what happens to the required performance under a contract?

1. It is achieved

2. It is excused

3. It is enforced

4. It remains pending

The correct answer is: It is excused

When a condition precedent does not occur, the required performance under a contract is excused. A condition precedent is a specific event or action that must take place before a party is obligated to perform their part of the contract. If this condition is not met, it nullifies the obligation to perform. In essence, the party that would have been required to perform is released from their duty because the foundational requirement for that performance wasn't satisfied. This principle helps ensure that performance is only required when the stipulated conditions agreed upon by both parties have been fulfilled. This ruling under contract law underscores the importance of conditions in contractual agreements and ensures that obligations are not unjustly enforced in the absence of agreed-upon prerequisites.