Contingent Consideration
/kənˈtɪn.dʒənt ˌkɒn.sɪˈdɛr.əʃən/
Definitions
- (n.) An arrangement in a contract where payment depends on the occurrence of a specified future event or condition.
The purchase agreement included contingent consideration based on the company's future earnings.
Forms
- contingent consideration
Related terms
See also
Commentary
Contingent consideration is commonly used in mergers and acquisitions to allocate risk and align incentives, typically requiring clear conditions to trigger payment.
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.