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Legal Definitions - potestative condition

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Definition of potestative condition

A potestative condition refers to a provision within a contract or agreement where the fulfillment of a specific obligation, or the very existence of the agreement itself, is made dependent on the sole will or action of one of the parties involved. When such a condition gives one party complete and arbitrary control over whether they will perform their part of the agreement, it can sometimes make the entire contract unenforceable due to a lack of genuine mutual commitment.

Here are some examples illustrating a potestative condition:

  • Imagine a written agreement where one party promises to buy a car from another, but includes the phrase, "I will purchase the car if I decide I still want it next month."

    This condition is potestative because the buyer's obligation to purchase the car depends entirely on their future, arbitrary decision. There's no objective standard or external event involved; it's purely up to their whim. Such a condition could make the entire agreement unenforceable because the buyer isn't truly bound.

  • Consider a construction contract where a homeowner agrees to pay the final installment for a renovation once they have personally inspected and approved the completed work.

    The payment of the final installment is a potestative condition because it depends on the homeowner's personal action and approval. While it's their decision, it's tied to a specific, observable event (inspection of completed work) rather than an arbitrary "if I feel like it." This type of condition, involving a reasonable assessment, is generally considered valid.

  • A large corporation offers a job to a candidate, stating that the offer is contingent upon the candidate successfully passing a company-mandated drug test and background check, which the company will arrange.

    The job offer becoming final is subject to a potestative condition because it depends on the candidate's action (taking the tests) and the company's subsequent evaluation of the results. While the company makes the final determination based on the test outcomes, the condition is tied to specific, objective criteria (passing standards) and actions, making it a valid and common type of condition in employment agreements.

Simple Definition

A potestative condition is a type of contractual condition where the fulfillment of the obligation depends entirely on the will or discretion of one of the parties to the agreement. Such conditions are often treated differently by courts, as they can make a promise illusory and thus unenforceable.

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