Failure of Condition Precedent Will Not Always Excuse Performance

Under contract law, a condition precedent is a condition that must be performed before any contract is binding or obligation created.  However, the Indiana Court of Appeals, in AquaSource, Inc. & the Reynolds Group, Inc. v. Wind Dance Farm, Inc., reemphasized the Hamlin  Doctrine, first established by the same court in Hamlin v. Steward, 622 N.E.2d 535 (Ind. Ct. App. 1993).  The rule states that "a party may not rely on the failure of a condition precedent to excuse performance where that party's own action or inaction caused the failure."  Instead, in order for the performance to be excused, the party that retains control over whether the condition is fulfilled must demonstrate that a reasonable and good faith effort to satisfy the condition was made.