Use of undeclared variable

In condition_selection_form() the code checks the value of a variable which is not defined in the function, nor it is a global variable.

function condition_selection_form($context) {	
  $conditions = condition_load();
  
  // We might get just the values instead of the form_state.
  if ($form_state['conditions']) {
    $form_state['values'] = $form_state;
  }
  
  // ...

I would guess the function forgets to declare the other parameter, and it should be written so:

function condition_selection_form(&$form_state, $context) {	
  $conditions = condition_load();
  
  // We might get just the values instead of the form_state.
  if ($form_state['conditions']) {
    $form_state['values'] = $form_state;
  }
  
  // ...