Contract Law – Conditions Part 2 of 2 from the movie Gung Ho

This clip from the movie “Gung Ho” illustrates the condition principle in contract law (See part 1 first). This second clip shows what might happen when “strict compliance” enters a gray area. A condition is an event (not certain to occur) which must occur, unless its non-occurrence is excused, before a contract becomes due. In other words, if a condition doesn’t occur, then the other party is under no obligation to perform in return. The promisor must perform fully in order to fulfill a condition. Some other concepts to think about in this clip: What’s the difference between a condition and a promise (or reference term)? Was the condition of making 15000 cars fulfilled? If not, was it waived? Was the condition excused by modifying it? In what way? What would a court say if you were to argue for excuse of non-occurrence to avoid “disproportionate forefeiture”? Was there an implied promise that the cars would be of high quality, or just the condition of turning out 15000 cars without any implied promise of quality? (hint: look at 1:30)
Video Rating: 5 / 5

A brief overview of phase one of government contracting presented by Steve McKinzie, President of M3 Corporation.