Okuzeka
Contract & Commercial Law vocabulary · Contract Terms & Clauses

Condition

Meaning in contract & commercial law, with examples

/kənˈdɪʃn/nounCommon term

In contract & commercial law, condition means: An essential term of a contract whose breach allows the other party to terminate; also an event that must happen before an obligation starts or that brings it to an end.

In Turkish: şart, koşul, esaslı şart

How it is used

In English contract law, terms are classed as conditions, warranties or innominate terms, and the class decides whether termination is possible. In everyday drafting, 'subject to the following conditions' and 'conditions precedent' describe things that must happen first.

Example sentences

  1. The date of delivery is a condition of this contract.

  2. The loan is subject to the condition that the guarantee is signed first.

Common collocations

  • breach of condition
  • subject to conditions
  • condition subsequent
  • satisfy a condition
  • conditions of sale
  • warrantyA promise in a contract that a fact is true or that goods or services meet a certain standard; if it proves wrong, the other party can usually claim damages.
  • termA provision of a contract that sets out a right or obligation; also the period of time for which a contract lasts.
  • condition precedentAn event or action that must happen before a contract, or a particular obligation in it, takes effect, such as a regulatory approval.
  • material breachA serious breach of contract that goes to the heart of the agreement and usually gives the other party the right to terminate.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Contract Terms & Clauses

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This page explains English vocabulary for learners. It is not legal advice.