What is an example of a condition precedent?

What is an example of a condition precedent?

In a contract, a condition precedent is an event that must occur before the parties are obligated to perform. For example, an insurance contract may require the insurer to pay to rebuild the customer’s home if it is destroyed by fire during the policy period. The fire is a condition precedent.

What is the difference between a condition and a condition precedent?

A condition precedent is one the fulfillment of which completes an inchoate title. A condition subsequent is one of the fulfillments which extinguishes a title already completed.

How do you prove conditional precedent?

In order for a condition precedent to be upheld it needs to be clear that the relief or obligation that is the subject of the condition precedent is contingent on the performance of certain obligations, creating a “conditional link”. 3 So long as this is clear, there are no specific words that need to be used.

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 the purpose of conditions precedent?

In addition to being drafted clearly and unambiguously, conditions precedent should be result focused and set out the clear intentions of the parties. In this case, for example, it would have been preferable for the condition precedent to specify the outcome that the parties sought to be achieved (ie.

What are the types of conditions?

The types of conditions in a contract can vary, but common ones are conditions precedent, conditions concurrent and conditions concurrent.

• What Is a Condition in a Contract?
• Condition Precedent.
• Condition Concurrent.
• Condition Subsequent.
• Why Add Conditions to Your Contract?
• What Is a Breach of Contract?

What is 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.