MBE Rules · Contracts
Prevention and Hindrance
Prevention doctrine
The rule
A party who wrongfully prevents or hinders the occurrence of a condition cannot rely on its nonoccurrence; the condition is excused and good-faith cooperation is implied.
In plain English
If one party to a contract deliberately prevents or makes it difficult for a condition to happen, they cannot use that failure to avoid their obligations under the contract. The law assumes that the condition is excused, and both parties are expected to cooperate in good faith.
Worked example
Party A agrees to sell a car to Party B, contingent upon Party B securing financing. However, Party A intentionally provides misleading information to Party B's bank, causing the financing to fall through. Party A cannot claim that the financing condition was not met to avoid the sale.
Memory hook
You can't block the door and then complain it's locked.
The trap
Exams may present scenarios where a party's actions seem passive, leading students to overlook the wrongful prevention aspect. Students might mistakenly think the condition's nonoccurrence is valid without considering the party's intent.
How examiners test it
Questions often involve a scenario where one party's actions or inactions lead to the failure of a condition, testing the candidate's understanding of wrongful prevention and its implications on contract obligations.
Drill this rule until it can't fail you.
Vrenberg generates unlimited questions on this exact rule, tracks your mastery of it, and brings it back until it sticks.