Contingency Clause
/kənˈtɪndʒənsi klɔːz/
Definitions
- (n.) A contractual provision that conditions obligations or rights on the occurrence of a specified event.
The sale agreement included a contingency clause requiring financing approval before closing.
Forms
- contingency clause
- contingency clauses
Related terms
See also
Commentary
Contingency clauses are critical for allocating risk and can significantly affect contract enforceability, so precise drafting is essential.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.