Carl, a contractor, has a contract with Ron, a realtor, to construct a new condominium complex. The contract provides that Carl must furnish a certificate of occupancy and conformity with the local fire code before Ron has an obligation to pay. The furnishing of the certificate is an implied-in-fact condition subsequent to the construction of the building.

Certificate of Occupancy

A document issued by a local government or building department certifying that a building complies with applicable building codes and other laws, and is safe to occupy.

Implied-in-Fact Condition

A legal term for conditions in a contract that are not stated but are understood as a necessary part of the agreement based on the circumstances and actions of the parties involved.

Condition Subsequent

A legal term that describes a condition in a contract that, if fulfilled, terminates the obligation or contract itself.