condition precedent

condition precedent definition - business

condition precedent

A condition that must be met before a contract is binding. For example, a contract to purchase real estate may not become effective until a professional inspection of the property results in an evaluation that is acceptable to the buyer.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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