Legal Definitions - positive condition

A positive condition refers to a specific event or fact that *must occur* or *must be true* before a legal obligation, right, or contract provision becomes active or binding. If this specified event does not happen, or the fact does not exist, then the related legal consequence (such as a payment, transfer of ownership, or performance of a duty) will not take effect or continue.

Here are some examples:

• Real Estate Purchase Agreement: Imagine a contract for the sale of a commercial property where the buyer's obligation to complete the purchase is contingent upon them securing all necessary zoning permits for their planned development within 90 days. The contract explicitly states that if these permits are not obtained, the buyer is released from the agreement.

  This illustrates a positive condition because the buyer's duty to buy the property only becomes firm *after* a specific event occurs: the successful acquisition of zoning permits. If the permits are not secured, the condition is not met, and the buyer's obligation to purchase does not activate.

• Employment Bonus Clause: A company's employment agreement states that an executive will receive a performance bonus *if* the company achieves a 15% increase in annual revenue by the end of the fiscal year.

  Here, the 15% increase in annual revenue is the positive condition. The executive's right to receive the bonus only arises *after* this specific financial target is met. If the company's revenue increase falls short of 15%, the condition is not fulfilled, and the obligation to pay the bonus does not take effect.

• Insurance Policy Coverage: An antique car insurance policy specifies that coverage for theft is valid *only if* the vehicle is stored in a locked garage overnight.

  The requirement for the vehicle to be stored in a locked garage overnight is a positive condition. The insurer's obligation to provide coverage for theft only applies *when* this specific storage condition is met. If the car is stolen while parked on the street overnight, the condition was not satisfied, and the theft coverage may not be active.