Contingency Period
/kənˈtɪndʒənsi ˈpɪəriəd/
Definitions
- (n.) A fixed timeframe during which certain predefined conditions must be fulfilled in a contract for obligations or rights to become effective or void.
The contract includes a contingency period of 30 days during which the buyer must arrange financing.
- (n.) A period allowing parties to satisfy conditions precedent before the contract advances or terminates.
If the inspection is not completed within the contingency period, the buyer may cancel the sale without penalty.
Forms
- contingency period
- contingency periods
Related terms
See also
Commentary
The contingency period is principally used in contracts to allocate risk and set deadlines for conditions; it is critical to specify exact duration and consequences of non-fulfillment to avoid ambiguity.
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.