What is the legal test for an oral condition in a construction contract?
Saskatchewan, Canada
The following excerpt is from Atco Structures Ltd. v. Foley, 1979 CanLII 2413 (SK QB):
The defendant maintains that the contract was subject to an oral condition that the agreement was not binding if the defendant was unsuccessful in securing financing for the hotel project. I find that such a condition precedent did exist: see Deslippe v. Maguire Construction Ltd. (1976), 1976 CanLII 947 (SK QB), 66 D.L.R. (3d) 130, [1976] 3 W.W.R. 646.
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