Question

A condition for the seller's release from a previous "agreement of purchase and sale" is a "true condition precedent" which means the condition is either fulfilled and the transaction can proceed or it is not fulfilled, and the offer becomes null and void. Waiver provision cannot be incorporated in this type of "true condition precedent" clause.

a) True
b) False

Answer 1

The statement that a waiver provision cannot be incorporated in a true condition precedent clause is false. A true condition precedent can include a waiver provision, allowing one party to waive the requirement for the precondition to be fulfilled.

Step-by-step explanation:

The statement is false. A true condition precedent in a contract does mean that the condition must be fulfilled before a transaction can proceed or otherwise the offer may become null and void. However, the inclusion of a waiver provision is possible and can allow one party to waive the need for the fulfillment of the precondition. It is not inherently incompatible with a true condition precedent, as the waiver is an intentional relinquishment of a known right, which in some cases could be to insist on the strict fulfillment of the condition. Using an example: If a purchase agreement states that it is contingent on the buyer obtaining financing and this is a true condition precedent, the buyer must secure the financing for the sale to go ahead. But, if a waiver provision is included, the buyer could choose to proceed with the purchase even without obtaining financing, effectively waiving the condition.