Condition precedent (subject clause) may only be waived or removed by which party?

• A. The party benefitting from the condition
• B. The party prejudiced by the condition
• C. The seller alone
• D. By unilateral agreement of all parties

Answer: (A)

A condition precedent is a clause that must be satisfied before the contract moves forward, and the power to waive or remove that condition belongs to the party who benefits from it. If a condition is in place to protect the party who stands to gain from its fulfillment (for example, a financing condition that allows the buyer to back out if they can’t obtain a loan), that beneficiary can choose to waive the condition and proceed without it. The other party doesn’t have the authority to unilaterally erase protections that favor the opposing side, because doing so would shift risk and potentially undermine that party’s interests. Of course, all parties can agree to waive a condition by mutual consent, but the primary power to waive rests with the beneficiary of the condition.