This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
A covenant by A to support B, and B's covenant to give his notes in consideration thereof, form dependent covenants; and B's covenant to give his notes is precedent to A's covenant to furnish such support, so that B can not recover damages for A's failure to furnish support, if B has not delivered such notes to A.1 Under a contract by which A rents moving picture films from B and agrees to pay for such films as are destroyed while in his possession, B's duty to furnish films in proper condition is precedent to A's covenant;2 and if such films are destroyed by reason of the defective condition in which B furnished them to A, A is not liable for such loss.3 If payment for a charter of a vessel is to be made in advance, failure to make such payment discharges the contract and no recovery can be had thereon.4 If A gives his note to B under a contract by which B is to pay a certain sum to A on payment of such note, A's payment of such note is precedent to B's duty to pay such sum to A.5 A contract to pay a certain amount when a certain tract is sold, makes the sale of such tract a covenant precedent to such payment.6 Under a contract by which A, who owns an undivided interest in property which has been sold at a foreclosure sale, agrees with X, through A's agent, B, that A, A's husband, C, and B, who owns the other undivided interest in such property, shall convey such property to X, who is to retain such property, sell it, and divide the proceeds with A and B, the covenant of A and B to convey to X is precedent to X's duty to retain, resell and divide the profits.7 An agreement that a contract should take effect only on approval by the attorney of one of the parties thereto is precedent.8 Under a contract to pay a certain sum to a university, if within thirty days the university should permanently locate the university buildings, to cost not less than one hundred thousand dollars, upon a given tract of land, the location of such buildings, and not their erection, constitutes the condition precedent. The covenant as to the cost of the buildings is merely a stipulation.9
15 Schillinger v. Bosch-Ryan Grain Co., 145 Ia. 750, 122 N. W. 961 [affirming, 116 N. W. 132].
16 Flynn v. Dougherty (Cal.), 26 Pac. 831.
17 Massachusetts. Buttrick Lumber Co. v. Collins, 202 Mass. 413, 89 N. E. 138.
Minnesota. Erickson v. Brandt, 53 Minn. 10, 55 N. W. 62.
Montana. Franklin v. Schultz, 23 Mont. 165, 57 Pac. 1037.
Pennsylvania. Huckstein v. Kelly & Jones Co., 152 Pa. St. 631, 25 Atl. 747.
Washington. John v. Mortgage Trust ft Savings Bank, 97 Wash. 504, 166 Pac. 1137.
18 Monmouth Park Assn. v. Wallis Iron Works, 55 N. J. L. 132, 39 Am.
St. Rep. 626, 19 L. R. A. 456, 26 Atl. 140; Mills v. Norfolk & Western Ry.,
90 Va. 523, 19 S. E. 171; and see s. c,
91 Va. 613, 22 S. E. 556. 19 Huckestein v. Kelly & Jones Co.,
152 Pa. St. 631, 25 Atl. 747. But in Negley v. Jeffers, 28 O. S. 90, a contract by a vendor to remove liens on realty before the last payment from the vendee should be due is a condition precedent and a waiver of such condition and agreement that the amount of such liens should be deducted from the purchase price and the balance paid was held to be a valuable consideration.
1 Bryne v. Dorey, 221 Mass. 399, 109 N. E. 146.
2 Famous Players Film Co. v. Salomon, - N. H. -, 106 Atl. 282.