Carl, a contractor, has a contract with Ron, a realtor, to construct a new condominium complex. The contract provides that Carl must furnish a certificate of occupancy and conformity with the local fire code before Ron has an obligation to pay. The furnishing of the certificate is an implied-in-fact condition subsequent to the construction of the building.

Question

Quizplus · Accepted Answer

The furnishing of the certificate is a condition precedent, not a condition subsequent, as it must be fulfilled before Ron's obligation to pay arises.

Carl, a Contractor, Has a Contract with Ron, a Realtor