What distinguishes the failure to fulfill suspensive conditions from the failure to fulfill a regular contractual term?
Suspensive conditions are frequently utilized in property sale agreements e.g. obtaining a loan before a certain date. A valid and binding agreement will only come into operation once the suspensive conditions are fulfilled. If the suspensive conditions are not fulfilled timeously and in totality, the agreement does not
come into operation. No claims for damages or commission can be instituted. This serves as a protection measure for purchasers who need to apply for mortgage financing or even sell their existing property to conclude the agreement if it was made a suspensive condition.
Unlike a suspensive condition, which causes the contract to immediately expire, a breach of contract occurs when a party does not perform in accordance with a normal contractual condition. Notice, as set out in the contract, must be given to the party in breach with a deadline for remedying the breach (contractually agreed). Should the party then not remedy the breach in the allowed period, the enforcing party can cancel the agreement and/or claim damages or specific performance, the agent can claim commission, and the attorneys involved can claim wasted costs.