What type of contract is characterized as conditional and requires fulfillment of certain obligations from both parties?

A conditional contract is defined by the necessity for certain conditions to be fulfilled in order for the obligations outlined within the contract to take effect. This means that the performance of one or both parties is contingent upon the occurrence or non-occurrence of a specified event or condition.

In this context, both parties must fulfill their respective obligations to ensure that the contract remains valid and that the agreed-upon terms are executed. For instance, if one party agrees to pay a certain sum only if the other party completes a specific task, the contract is conditional on that task being completed.

This differentiates the conditional contract from unilateral contracts, which involve an obligation from only one party, or personal contracts, which may not necessarily include conditional obligations. Estoppel does not relate to the fulfillment of contractual obligations in the same manner as conditional contracts do. Understanding this structure is essential in title insurance practices, as it can impact the rights and responsibilities of the parties involved in real estate transactions.