What does condition precedent mean?
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 difference between a condition and a condition precedent?
A condition precedent always comes before the creation of an interest. A condition subsequent always follows the vesting of an interest which is already complete.
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 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.
How do you use condition precedent in a sentence?
From 1821 to 1891 the payment of at least a poll-tax was a condition precedent to the exercise of the suffrage. He shows that a certain accumulation of capital is a condition precedent of this division, and that the degree to which it can be carried is dependent on the extent of the market.
What is a condition is used for in a contract and what are the conditions precedent from the conditions subsequent?
Primary tabs. In general, a condition is a term or requirement stated in a contract. Such a term can be drafted as a condition precedent or condition subsequent, among other things. A condition subsequent is an event or state of affairs that, if it occurs, will terminate one party’s obligation to the other.
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 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. For the seller, these conditions culminate out of the due diligence carried out by the buyer.
What is plural for condition precedent?
Meaning of condition precedent in English condition precedent. noun [ C ] plural conditions precedent. LAW.