Legal Definitions - dependent promise

A dependent promise occurs in a contract when one party's obligation to fulfill their promise is conditional upon the other party first fulfilling their own promise. In essence, the performance of the second promise "depends" on the prior performance of the first. If the first promise is not performed, the party making the dependent promise is generally excused from having to perform theirs. This concept helps establish the order in which contractual obligations must be met.

• Example 1: Home Renovation

  Imagine a homeowner hires a painter to repaint their entire house. The contract specifies that the homeowner will make the final payment of $5,000 *after* the painting is completed to a satisfactory standard. The homeowner's promise to pay the final $5,000 is a dependent promise. It is entirely conditional on the painter first completing the painting job as agreed. If the painter abandons the job halfway through, the homeowner is not obligated to make that final payment.

• Example 2: Software Licensing

  A company enters into an agreement with a software vendor to license a new project management tool. The agreement states that the vendor will provide access to advanced training modules *only after* the company has paid the full annual licensing fee. The vendor's promise to provide access to the advanced training modules is a dependent promise. It relies on the company first fulfilling its promise to pay the full licensing fee. If the company fails to make the payment, the vendor is not legally required to unlock those training modules.

• Example 3: Event Planning

  A client hires an event planner for a large corporate gala. The contract stipulates that the event planner will book the entertainment acts *once* the client has provided a confirmed guest list and a 50% deposit. The event planner's promise to book the entertainment is a dependent promise. It is contingent upon the client first providing both the guest list and the deposit. If the client fails to provide these initial items, the event planner is not obligated to proceed with booking the entertainment.