Conditions precedent should normally be “satisfactory to the lender in terms of form and content”. If this wording is included, the borrower must ensure that they receive written confirmation from the lender when all the conditions are met, so that there is no room for the lender to be satisfied or not. Main article: simple fee provided a posteriori A waiver letter simply confirms that, notwithstanding the terms of the facility agreement, the lender no longer requires the borrower to meet certain conditions precedent and, therefore, those conditions are removed. This can also be done by removing the adopted conditions from the schedule in the installation agreement, but it also depends on the date on which the installation agreement was concluded. Normally, an infringement would lead the non-injuring party to claim damages from the injured party – see What happens if a condition precedent is breached? above. A condition precedent may be invoked if the payment of damages would not adequately compensate the non-injuring party or if non-performance of the condition precedent means that the contract would not be relevant. A subsequent condition is indicated in the law for their common use. Before a loan is granted, the lender will generally require the following: while the performance of a condition precedent has the effect of rendering the contract or certain obligations valid and binding, a subsequent condition has the opposite effect. This is a contract that is already valid and binding if the condition is not met. Finally, one of the key aspects of CS is who chooses the outcome. For example, when a CS concerns a person`s taste or judgment, only that person can decide whether a condition is met. The object of the contract has all the power. In this context, leaving a state to personal taste or judgment is a bad idea.
For contracts, CP is something that has to happen. If this is the case, the party must abide by its part of the agreement. Until the entry of the CP, the party has no obligations. A CP is a triggering mechanism. Practice Question: Harold reaches an agreement to sell his house to Emily. The contract states that Emily is exempt from her obligation to buy Harold`s house if the house does not get permission from a licensed inspector. What kind of condition is included in this agreement? The suspensive real estate conditions generally relate to the conditions of the property acquired or the financing of the purchase. A party does not want to enter into the contract if the property has problems. Similarly, the party will not complete the purchase if the financing fails. The Vice-President makes these objects contractual. To reduce the risk, the wording of the treaty must be extremely clear and reliable as regards the condition to be fulfilled and its consequences, if not the case.
The use of the term “condition precedent” is not necessarily necessary, but, given the case law, it may be advisable to include it. Consistency throughout the document, when referring to previous conditions, is also essential. A CS is a kind of insurance for one or more parties. It guarantees that one of the groups can enter the contract if certain conditions are met….