CONTRACT LAW — Formation of Contract — Conditional Offer — Formation Postponed Until Condition Fulfilled
Ratio Decidendi
Per Adekeye, JSC, in Bilante Int'l Ltd v. NDIC (2011) NLC-123-177-1996(SC) at p. 17; Paras B—D:
"Usually, when an offer is subject to a condition, the formation of the contract is postponed until the happening of the event on which the offer is conditioned. If the condition of the offer is that unless something is done within a stipulated time the offer is determined such an offer cannot be accepted after the beginning of the event."
Explanation / Scope
This principle establishes that where an offer is subject to a condition, contract formation is postponed until the condition is fulfilled, and the offer cannot be accepted after the stipulated time. The principle applies in conditional contracts. It ensures that conditions are met. The principle reflects the effect of conditions. It prevents acceptance after the condition lapses. The court must require fulfillment. The principle provides guidance on conditional offers.