Condition precedent

A condition precedent suspends the legal effect of a contract or obligation until an uncertain future event occurs. In Swiss obligations law, parties may make rights and duties conditional unless the condition is unlawful, impossible or incompatible with the nature of the transaction. Before the event, the parties have an expectant legal position and must generally avoid frustrating the condition in bad faith. Once the condition occurs, the obligation becomes effective as agreed. A condition differs from a term because the event is uncertain.