In a conditional contract, what is required for the contract to be enforceable?

Study for the AD Banker Life Insurance Exam. Test your knowledge with flashcards and multiple choice questions, each equipped with hints and explanations. Ensure you're prepared for the exam!

A conditional contract is one in which the obligations of the parties involved are contingent upon the occurrence of certain events or conditions. For such a contract to be enforceable, it is essential that both parties fulfill their respective duties as stipulated in the contract. This means that unless the agreed conditions are met, neither party is bound to perform their end of the agreement.

In this context, if one party does not perform their designated task or fulfill the specific condition, the contract may not be enforced. Therefore, the requirement for both parties to perform certain duties is crucial for the enforceability of a conditional contract, ensuring that the expectations set forth are met before any obligations are legally binding.

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