1)
It's the latter, just a literal translation of the English. There is no such expression in Japanese.
2)
で is more likely adverbial here.
の形で使う: to use in the form of~.
The subject is "we/you", thus, the subjects of the first and last half are different.
3)
It seems like so, but the meaning of 条件 would change depending on the context, I think.