Condition Precedent

What Does Condition Precedent Mean?

A condition precedent is a contractual stipulation that requires a specific action to occur before fulfilling an obligation.

Insuranceopedia Explains Condition Precedent

A contract may stipulate, for instance, that the sale of a building will proceed only if it passes a physical inspection. In this case, the inspection serves as a condition precedent. This stipulation is often included in real estate transactions and is typically prescribed by the potential buyer as a safety mechanism.

A condition precedent is also common in wills. The testator may specify certain conditions that must be met before the inheritance is bequeathed to their heirs. For example, the heir may need to reach a certain age before acquiring their inheritance.