Marie, a prospective buyer, submits a Promise to Purchase for a condo in Gatineau, offering $350,000. Her Promise includes a condition stipulating that she must obtain a mortgage loan for 80% of the purchase price at an interest rate not exceeding 3.5% within 10 days. The seller accepts the Promise. What is the legal nature of this condition?

Question: Marie, a prospective buyer, submits a Promise to Purchase for a condo in Gatineau, offering $350,000. Her Promise includes a condition stipulating that she must obtain a mortgage loan for 80% of the purchase price at an interest rate not exceeding 3.5% within 10 days. The seller accepts the Promise. What is the legal nature of this condition?

Answer options:

• It is a resolutory condition, meaning the contract is dissolved if the condition is not met. ✅ It is a suspensive condition, meaning the obligations under the contract are suspended until the condition is fulfilled.
• It is a condition of validity, rendering the Promise null if not satisfied.
• It is a casual condition, dependent solely on the will of a third party.

Correct answer: It is a suspensive condition, meaning the obligations under the contract are suspended until the condition is fulfilled.

Explanation: This is a suspensive condition. Under Article 1500 of the Civil Code of Québec, a suspensive condition suspends the existence of the obligation until the event occurs.