Is a condition of a settlement agreement enforceable if a party fails to obtain approval from the California Court of Appeal?

California, United States of America


The following excerpt is from Canal Street, Ltd. v. Sorich et al., 91 Cal.Rptr.2d 811 (Cal. App. 2000):

Under the circumstances at the time of the settlement, the only reasonable inference is that the condition of Fund approval was inserted by appellants to give them an option not to consummate the settlement agreement if they failed to obtain approval. Appellants presented no substantial evidence-reasonable, credible, and of solid value (Kruse v. Bank of America (1988) 202 Cal.App.3d 38, 51)-to contradict this inference. As such, the condition was appellants' to waive.

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