What’s All The Buzz: Condition Precedent in a Nutshell
- Tuesday, October 12th, 2010 at 6:19 PM
A Condition Precedent initiates a duty.
A Condition Precedent is an external fact upon which the existence of the obligation depends.
In contract law a condition precedent is a provision of contract that suspends the coming into effect of a contract or a term of the contract unless or until a certain event(s) takes place, or as is stated, be subject to a condition precedent. (Pym v. Campbell (1956) 6 E&B 370).
Since a copy of the contract has not been personally viewed, presumably, securing financing and securing an alien land holder’s license are a few of the CPs of the contract agreement between BVI Government and BiWater.
First, there may be no contract at all. This may be either, as in agreements ‘subject to contract’, because the parties may have agreed not to be bound until some future event (e.g. the coming into force of a formal contract) which cannot take place without the concurrence of both parties because the conditions are uncertain.
Secondly a CP may operate, not to negative the very existence of a contract but to suspend same, until it is satisfied, some right or duty or consequence is met which would otherwise spring from the contract.
A Contract between the Government of the British Virgin Islands and BiWater was executed on March 18, 2010, to improve the water and sewage problems in the Territory. The Build Own Operate and Transfer (BOOT) contract means that the water plant will be handed over, free of charge, in good working condition to Government at the end of a 16-year period.
He (Hon. Ralph T. O’Neal, Premier) was speaking against the disclosure by Communication and Works Minister Hon. Julian Fraser that Government is to be blamed for not meeting certain conditions in the agreement between Government and BiWater. This Fraser said, is preventing the company from getting the loan.
Contradiction: In his response, Premier and Chairman of the Virgin Islands Party said, Biwater loan was not his business, and what he is interested in is that they execute the contract signed by his administration and he was pleased to report that they have started the project. Question: the Premier was asked by a caller if BiWater had received their loan to fund the Biwater sewage and water projects. (Virgin Islands Party’s talk show ‘Let’s talk’, September 14, 2010)
Communication and Works Minister Julian Fraser alleged during a radio interview on Tuesday (September, 28, 2010) that government is responsible for BiWater’s delay in obtaining a loan necessary to move forward with major water and sewerage works on Tortola. Asked by a ZBVI reporter why BiWater has not yet met the conditions precedent for the contract to go into effect, Mr. Fraser spelled out “g-o-v-e-r-n-m-e-n-t.” (The BVI Beacon, September 30, 2010).
Timeline of developments coming soon!
Concerned
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7 Comments
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The banks are hearing the ppl’s cry they don’t want Biwater that is why they can’t get a loan.
@Real: @Real: @Real: Spill the beans help the marchers to victory and send biwater packing. I wid you
WHAT ARE WE GOING TO DO WITH PWD OUT SOURCE THEIR JOBS TOO.
Biwater is not going to fix our sewarage problems. We have to do that ourserves.
@Real: Yes dont leave a thing alone, bring it to the public, we need to know what going on, leave it alone what….stupppps
Yes IDIOT let’s leave it alone!! Now imagine if Noel Lloyd (rest his soul) said that how many years ago when he fought the Bates Hill battle? What if he said “man leave that alone, let the man build his thing it will look nice etc.”?? What if Edmund, Cromwell etc. said “Man leave it alone” when they brought to light the MILLIONS sent to a BiWater subsidiary to source a generator? The fact that they brought it to the public is the only reason we got it back and FURTHER funds weren’t sent!
You all too bad minded against your own but don’t worry, BiWater will be sent PACKING soon, STAY TUNED!!!!!!!!!!
For God’s sake leave it alone. Let Biwater carry on its work. Do you want water problems and sewage running in the streets forever!!
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