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5 December, 09:21

Michael has been hired as an attorney at a law firm. However, his contract remains valid only if he passes the bar exam within a year of joining the firm. The law firm is not obligated to retain the contract if Michael does not pass the bar exam. This is an example of a condition precedent.

True of False

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  1. 5 December, 09:44
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    Answer: False

    Explanation:

    Condition precedent is defined as the occurrence of any event before a certain situation occurs. In terms of contract, a party will enter a contract if certain task is performed before agreement is formed to fulfill the condition for situation to take place.

    According to the question, contract in which Micheal is involved does not refer to the condition of passing bar exam before formation of contract rather he has entered the agreement and contract can get cancelled as per wish of law firm based on getting pass or fail in exam.

    Therefore, the given scenario in question is false.
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