Conditions precedent

When concluding a contract, it is often desirable to make a reservation. That reservation may consist of the desire to still be able to waive the agreement if a certain condition is met.

An example is if you have not secured financing for your new house before a certain date. We call this a resolutive condition. With the resolutive condition, the contract exists from the moment the contract is concluded, but this contract is dissolved when the condition is fulfilled. The proviso may also consist of the desire that the contract only come into existence when a certain condition is fulfilled. We call this a condition precedent.

Many conditions do involve an obligation to use one's best efforts. For example, the resolutive condition financing. If at any time it is determined that it was absolutely unrealistic that financing could be obtained, the condition cannot be invoked. This is also the case if the buyer has not done his best enough to obtain financing.

For more information on conditions and their proper drafting, please contact us. We will be happy to advise you.