Legal Definitions - resolutive condition

A resolutive condition is a specific clause within a contract or legal agreement that, upon the occurrence of a particular future event, automatically terminates the agreement or a right that was previously in effect. In essence, an agreement with a resolutive condition is immediately valid and enforceable, but it will cease to exist or be effective if the specified condition is met. It's the opposite of a suspensive condition, which prevents an agreement from becoming effective until a certain event happens.

• Example 1: Commercial Lease Agreement

  Imagine a business owner leases a storefront for five years. The lease agreement includes a resolutive condition stating that if the tenant fails to operate a retail business in the premises for more than 90 consecutive days, the lease will automatically terminate, allowing the landlord to reclaim the property. The lease is active and the tenant is using the space from day one. However, if the tenant closes their retail operation for longer than 90 days, that specific event triggers the resolutive condition, bringing the entire lease agreement to an end.

• Example 2: Software Development Contract

  A company hires a freelance developer to create a new mobile application. Their contract includes a resolutive condition stating that if the developer fails to deliver a functional prototype by a specified date, the contract will automatically terminate, and any payments made will be refunded. The contract is active, and the developer begins work immediately. If the developer misses the prototype deadline, this event fulfills the resolutive condition, causing the contract to automatically end and obligating the developer to return any advance payments.

• Example 3: Donation with a Purpose

  A philanthropist donates a significant sum of money to a local charity, with a resolutive condition that if the charity uses the funds for any purpose other than building a new community center, the donation must be returned. The charity immediately receives and can use the funds, but only for the specified purpose. If the charity decides to divert the money to, for instance, administrative costs or another project, that action would trigger the resolutive condition, obligating the charity to return the donated amount to the philanthropist.