Is a condition precedent that requires the vendor to pay the survey costs of the surveyor valid?

British Columbia, Canada


The following excerpt is from 1061403 B.C. Ltd. v Canada Willingdon Holdings Ltd., 2018 BCSC 1067 (CanLII):

There are two types of condition precedent – “true” conditions precedent and what are sometimes called “internal” conditions precedent. An internal condition precedent is a condition that can be satisfied by the actions of the parties. These are sometimes characterized as promissory conditions because they hinge on promises to action undertaken by the parties: Fridman at p. 423. For example, in McCauley v. McVey, 1979 CanLII 50 (SCC), [1980] 1 S.C.R. 165, Laskin C.J.C. concluded that a provision in a contract requiring a vendor to “arrange for and bear cost of any necessary survey or surveys to allow transfer of title” was not a true condition precedent, because the fulfillment of the condition rested on action being taken by the defendant and not on an action being taken by a third party: pp. 168-170.

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