When it comes to the legal jargon, there are many terms that can be confusing. One such term is “conditional contract.” In simple terms, a conditional contract is a type of agreement where certain conditions must be met before the contract is legally binding.
A conditional contract is beneficial for both parties as it ensures that both parties are on the same page and understand their obligations before entering into a legally binding agreement.
For example, if you were to purchase a home that is still under construction, you may enter into a conditional contract with the seller. The conditions may include the completion of the home before the sale is final, as well as the inclusion of certain fixtures, fittings, or upgrades.
In this scenario, the contract would be considered conditional until the conditions are met. Once the conditions are met, the contract becomes legally binding and enforceable.
It`s important to note that the conditions of a conditional contract must be specific and measurable. This means that they must be clear and concise, so that both parties clearly understand what is expected of them.
In addition, it`s important to ensure that the conditions of the contract are reasonable and not impossible to fulfill. If the conditions are deemed unreasonable, the contract may be voided.
In conclusion, a conditional contract is a type of agreement that is beneficial for both parties. It ensures that both parties are on the same page and understand their obligations before entering into a legally binding agreement. If you`re entering into a conditional contract, it`s important to ensure that the conditions are specific, measurable, and reasonable.