Precedent Condition
/ˈprɛsɪdənt kənˈdɪʃən/
Definitions
- (n.) A condition precedent is an event or state of affairs that must occur before a contractual duty arises or before an obligation becomes enforceable.
The contract stipulated a precedent condition that the buyer obtain financing before closing the sale.
Forms
- precedent condition
- precedent conditions
Related terms
See also
Commentary
Draft contracts should clearly specify precedent conditions to avoid ambiguity about when obligations become binding.
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.