Condition Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Condition, written in plain English, along with examples of how it is used.
What is Condition?
Definite terms specified in the contract that has to be fullfilled by a party who signs the contract.It is a legal obligation to meet the requirements of the contract.
History and Meaning of Condition
Legal contracts often impose various obligations on the parties in order to ensure that the transaction is completed according to the agreement. These obligations are generally represented by specific terms that must be met before the contract can be considered fulfilled. Such terms are known as "conditions". Conditions are essential for legally binding contracts, and they outline the expectations and responsibilities of each party involved.
In contract law, there are two main types of conditions: precedent and subsequent. Precedent conditions are terms that must be met before a party's obligation to perform arises. Subsequent conditions, on the other hand, are terms that must be satisfied after a party has already performed their part under the contract. The precise nature of the condition will depend on the wording used within the contract itself.
Examples of Condition
- A construction contractor and a property owner sign a contract stating that the contractor will build a new deck in the owner's backyard. A condition of the contract may be that the contractor must complete the work within a certain amount of time, or he/she will be subject to a penalty.
- Company A hires Company B to provide marketing services for them. A condition of the contract may be that Company B must achieve a certain level of sales growth by a specified date, or they will be required to provide additional resources at no extra charge.
- Two parties may sign a contract with a condition that the contract will be void if certain circumstances happen beyond their control, such as a natural disaster, war or acts of terror, which may prevent the parties from fulfilling their obligations.
Legal Terms Similar to Condition
- Warranty: a guarantee made by one party to another that specific facts or conditions are true or will happen.
- Covenant: a promise within a contract that specifies certain obligations that each party must meet.
- Representations: statements made within a contract regarding matters of fact.