Which statement best describes a breach of condition?

• A. It is a casual promise with limited remedies.
• B. It is a non-fundamental warranty.
• C. It is a fundamental promise that may allow termination.
• D. It is an obligation that cannot be terminated.

Answer: (C)

In contract law, terms are treated as conditions or warranties. A condition is a fundamental term—the promise that's essential to the contract’s purpose. When a condition is breached, the non-breaching party may treat the contract as terminated and seek remedies. In real estate deals, conditions are the clauses that must be satisfied for the sale to proceed; if one of these core promises isn’t met, termination is often the right response. That’s why describing a breach of condition as a fundamental promise that may allow termination fits best. By contrast, a warranty concerns a less critical term, and its breach usually only allows damages rather than ending the contract. An obligation that cannot be terminated contradicts the usual leverage a breached condition provides.