750 AN ILLUSTRATION. CONTRACTS. [§ 602 Covenants and Conditions Distinguishable.-It is of the utmost importance that the technical distinctions between a covenant and a condition be understood. A covenant is an executory, promissory agreement to do or perform, and for breach of this promise an action will lie for the damages caused by the breach. A condition is an act required to be performed, or required not to be performed, or an event the happening of which shall dispense with further performance; and the effect of a condition is to put an end to and forfeit all rights under the mutual stipulation to which it relates. But a condition does not sustain an action for damages.2 One can readily understand that a party might be willing to enter into a contract agreeing to do, or to sell, upon condition that if he did not do what he promised he should forfeit the consideration, where he would not be willing to make the same contract coupled with the responsibility to answer for uncertain damages which might be caused by this breach; and in order that the practitioner may not bring an action upon a contract which is in fact a mere condition, it is essential that the distinction be thoroughly understood.3 1 These rules apply to covenants in all classes of contracts and also to deeds and grants in wills; and while the citation is purposely restricted to as few cases as will illustrate the rule, the cases have been selected with a view to illustrate many phases of the subject. 2 Hale v. Finch, 104 U. S. 266; Blanchard v. D., L. & L. M. Ry. Co., 31 Mich. 46; Palmer v, Plank-road Co., 11 N. Y. 389; Close v. Buriington, C. R. & N. Ry. Co., 64 Iowa, 149. These conditions are called in the 3 For example. in Hale v. Finch, This illustration is but one among thousands showing how the practical and the elementary are combined in ANDREWS' AMERICAN LAW. 1 vol. 1,250 pages. $6.50 net. CALLAGHAN & COMPANY, Chicago. WILL GO ON YOUR BOND. Transacts a General Trust and Guaranty Business. J. M. JACKSON, Jr., President. J. B. FINLEY, Secretary and Treasurer. V. B. ARCHER, General Counsel. Vice-Presidents. S. D. CAMDEN, F. S. LANDSTREET, HARRISON B. SMITH. Directors. J. M. Jackson, Jr., C. H. Shattuck, S. D. Camden, John T. McGraw, I. O. Reynolds, T. Moore, Jackson, David E. Johnston, Warren Miller, F. S. Landstreet, George A. Burt, Geo. F. Miller, W. P. Hubbard, Harrison B. Smith, I. C. White, J. B. Finley. Become sole surety on bonds of all kinds. Make loans on collateral and real estate. Collect incomes, rents, interests and dividends. Furnish equipment for railways under "Car Trust" system. 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