Condition Precedent

Condition Precedent
A legal term describing a condition or event that must come to pass before a specific contract is considered in effect or any obligations are expected of either party.

There may also be condition precedents in the ongoing life of a contract, which simply state that if condition X occurs, event Y will then occur. Condition X is the condition precedent.

In real estate, for example, a mortgage contract will have a condition precedent that an inspection to assess the condition and value of the property must occur and be agreed to by both the buyer and the lender before the mortgage contract takes effect.

Condition precedents are also quite common in wills and trusts, where the transfer of money or property only occurs after certain stipulations are met, such as an heir being married or reaching a certain age.


Investment dictionary. . 2012.

Look at other dictionaries:

  • condition precedent — see condition Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. condition precedent …   Law dictionary

  • condition precedent — conˈdition ˌprecedent noun [countable] LAW a condition in a contract that will only come into force once something stated in the contract happens or becomes true: • The continuing existence of the lease was not a condition precedent to the right… …   Financial and business terms

  • Condition precedent — refers to an event or state of affairs that is required before something else will occur. In contract law a condition precedent is an event which must occur, unless its non occurrence is excused, before performance under a contract becomes due, i …   Wikipedia

  • Condition precedent — Precedent Pre*ced ent, a. [L. praecedens, entis, p. pr. of praecedere: cf. F. pr[ e]c[ e]dent. See {Precede}.] Going before; anterior; preceding; antecedent; as, precedent services. Shak. A precedent injury. Bacon. [1913 Webster] {Condition… …   The Collaborative International Dictionary of English

  • condition precedent — A contractual condition that is required to be met before a contract can be completed. (Dictionary of Canadian Bankruptcy Terms) United Glossary of Bankruptcy Terms 2012 …   Glossary of Bankruptcy

  • condition precedent — A condition which is precedent either to the existence of a contract (17 Am J2d Contr § 24) or to the inception of an obligation immediately to perform a contract previously made. 17 Am J2d Contr § 321; in the law of estates, a condition which… …   Ballentine's law dictionary

  • condition precedent — noun a condition imposed on an agreement that must be satisfied before property is transferred between parties …   Wiktionary

  • condition precedent — noun : a condition whose fulfillment must precede the vesting of an estate, the taking effect of a contract, or the accruing of a right …   Useful english dictionary

  • condition precedent —    In a contract, an event that must take place before a party must perform or do his or her part. For example, supplies must be delivered to a building site before a contractor is required to start work on a project …   Business law dictionary

  • remainder subject to a condition precedent — See: contingent remainder Category: Wills, Trusts & Estates Nolo’s Plain English Law Dictionary. Gerald N. Hill, Kathleen Thompson Hill. 2009 …   Law dictionary

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