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Contract condition (English law)

A condition is a contractual term classified so that its breach gives the innocent party a right to terminate for that breach, as well as a potential damages claim. The innocent party may instead affirm the contract where the law permits. Classification depends on the contract and applicable law; a term is not necessarily a condition merely because it is important in ordinary language.

Worked example

A seller breaches a delivery term that the contract and applicable law classify as a condition. The buyer considers whether to terminate or affirm, and whether recoverable damages arise.

Common mistake

Assuming all contractual terms are conditions or that termination happens automatically without the innocent party’s election.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA LW (ENG) Direct September 2026–June 2027