A contract requiring certain conditions to be met before obligations are triggered is called a

• A. Contract of adhesion
• B. Conditional contract
• C. Aleatory contract
• D. Unilateral contract

Answer: (B)

A conditional contract is one whose obligations only arise when specific conditions are satisfied. This means performance is contingent on an event or prerequisite occurring, so neither side is bound to act until those conditions are met. In insurance terms, coverage and payment duties often hinge on conditions such as timely premium payment or the occurrence of the insured event within policy terms, making the contract conditional in nature. The other descriptors describe different ideas: a contract of adhesion is a take-it-or-leave-it form, not about triggering obligations; an aleatory contract centers on the randomness of outcomes and unequal exchanges, which can include insurance but doesn’t define the triggering of duties; a unilateral contract involves a promise by one party in exchange for an action by the other, not specifically about conditions that must occur to trigger performance.