Which of the following statements best describes a conditional contract?

A conditional contract is one that requires certain conditions to be met before it is enforceable. In this type of agreement, both parties have specific duties or obligations that must be fulfilled initially for the contract to take effect or for one party's obligation to arise. For example, in an insurance contract, the insurer's duty to pay a claim is often conditional upon the insured meeting specific requirements such as paying the premium and providing adequate information regarding the claim.

This characteristic of conditional contracts distinguishes them from other types of contracts where obligations may exist without any conditions or may be one-sided. Understanding this concept is vital in the context of contracts in insurance, where the fulfillment of both parties' obligations is crucial for the agreement to hold legal weight.