Law School Case Briefs
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Mind & Motion Utah Investments, LLC v. Celtic Bank Corp.
Utah Supreme Court (2016) | 2016 UT 6; 367 P.3d 994; 805 Utah Adv. Rep. 12; 2016 Utah LEXIS 6; 2016 WL 358872
TL;DR: A bank failed to record a property plat by a contractual deadline, arguing the requirement was a condition dependent on county approval. The court found the mandatory language ("shall record") created a binding promise (covenant), making the bank liable for breach of contract.
Legal Significance: This case clarifies the distinction between covenants and conditions, holding that using mandatory language like "shall" can create a binding covenant and allocate the risk of third-party non-performance to the promisor, even when performance depends on that third party's action.