What is condition precedent in law?
A condition precedent is a condition or an event that must occur before a right, claim, duty, or interests arises. In a contract, a condition precedent is an event that must occur before the parties are obligated to perform.
How do you identify a condition precedent?
A condition precedent is a legal term describing a condition or event that must come to pass before a specific contract is considered in effect or any obligations are expected of either party.
What is condition subsequent and precedent?
A condition subsequent is a philosophical and legal term referring to a defined event which terminates a proposition or a contractual obligation. In contrast to a condition precedent, a condition subsequent brings the event (or obligation) to an end, rather than being necessary for to the event or obligation to occur.
What is the meaning of condition in law?
A condition in law is a future, unforeseeable event that will cause certain rights under a contract to be destroyed, created, or expanded upon.
What is the purpose of condition precedent?
In contract law, a term in a contract which provides that the agreement or certain parts of the agreement will only come into force if and when certain conditions are satisfied.
What are conditions precedent in M&A?
Conditions precedent (CPs) are clauses which provide that certain parts of the contract will only come into force if and when agreed conditions are met or are waived. On an M&A deal, this typically means there is no obligation to complete the transaction until the CPs are met.
What is the purpose of conditions precedent?
Key lesson: conditions precedent should focus on results However, the case highlights the importance of clearly-drafted conditions precedent to ensure there is no dispute in the first place as to whether the conditions have been satisfied and the contract has come into force.
What is a conditions precedent checklist?
A condition precedent is an event that must occur before a contract can be fulfilled. Lenders will often require that borrowers provide certain documents and/or information (such as the company’s constitutional documents or current financial information) before they will make funds available.
What is condition precedent in transfer of property?
Any condition that is required to be fulfilled before the transfer of any property is called a condition precedent. For example, A is ready to transfer his property to B on the condition that he needs to take the consent of X, Y and Z before marrying.
What do you mean condition?
1 : something essential to the appearance or occurrence of something else especially : an environmental requirement available oxygen is an essential condition for animal life. 2a : a usually defective state of health a serious heart condition. b : a state of physical fitness exercising to get into condition.
What is an example of a condition?
The definition of condition is the state something or someone is in or can also refer to a specific illness. An example of condition is a brand new sofa with no defects. An example of a condition is a harsh work environment. An example of a condition is a cold or the flu.
Can you breach a condition precedent?
If you fail to satisfy a condition precedent to your contract, then it may allow the defendant (the breaching party) to shield themselves from liability — the defendant can reasonably argue that they did not actually commit breach by violating any contractual obligations.
What is an example of a condition precedent in?
A condition precedent is also common in estate planning, and in establishing trusts . For example, a parent can set up a trust for his her her child, but make receipt of the money in the trust based on the child fulfilling a condition. This condition is referred to as the condition precedent on inheritance.
When is a condition a true condition precedent?
A clause is a true condition precedent if the satisfaction of the condition within the clause is dependent on a future uncertain event, the happening of which depends entirely on the will of a third party. For example, a clause stating that a buyer’s offer is conditional on the buyer acquiring a neighbouring piece of property would be a true condition precedent, as the act of buying that neighbouring property is entirely dependent upon the will of a third party, in this case the owner of
What is the opposite of “condition precedent”?
Condition Subsequent. A condition subsequent is the opposite of a condition precedent, as it is a condition that, if it occurs, terminates the contract or agreement, or brings to an end a party’s duties.
What is the plural of condition precedent?
condition precedent (plural conditions precedent) (law) a condition imposed on an agreement that must be satisfied before property is transferred between parties. (law) a condition depending upon an uncertain event which must be fulfilled before an obligation arises or a legal transaction takes effect.