Résolutoire

Resolutoire is a term of art primarily used in civil law jurisdictions, particularly in contract law. It refers to a condition that, if it occurs, will terminate a contract or an obligation. Essentially, it is a future and uncertain event upon which the termination of a legal relationship depends.

This concept is distinct from a resolutory condition, which can also terminate a contract but often refers to a condition that has already occurred or is presently occurring. A resolutoire condition, on the other hand, is typically a condition precedent that must be met for the termination to take effect. For example, a contract might include a resolutoire condition where a loan is granted, stating that if the borrower fails to make payments by a certain date, the loan agreement will be terminated.

The effect of a resolutoire condition is retrospective in some legal systems, meaning that upon its fulfillment, the contract is considered as if it had never existed, and parties are restored to their original positions. However, the precise legal effect can vary depending on the specific jurisdiction and the wording of the contract. It is a crucial element in risk allocation and provides a mechanism for parties to exit an agreement under predefined circumstances.