What is meant by condition precedent?
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.
What is the condition precedent in law?
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 is the purpose of conditions precedent?
A condition precedent is a stipulation that defines certain conditions that must either occur or be met by either party to ensure progress or execution of a contract.
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 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 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 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 happens if a condition precedent is not met?
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 does condition precedent mean in construction?
A condition precedent is a contractual requirement that must be fulfilled before a contractual entitlement or obligation arises. A condition precedent to an extension of time or money claim, might be specific notice at a specific time.
What are conditions precedent in share purchase agreement?
Conditions precedent are all actions that are required to be carried out by both the parties before the actual transaction of sale of shares occurs. The party would inform the other party upon completion of these conditions, post which, the parties would go forward with the sale.
What is a condition precedent in a facility agreement?
Can you breach a condition precedent?
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.
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.
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