Suspensive Conditions: Putting the Brakes on Contracts

A suspensive condition is a clause in a contract that suspends the contract until a future event occurs. This means that the contract is not binding until the condition is met. For example, a common suspensive condition is that the buyer must be able to secure financing for the purchase of a home.

We’re Sharing the Most Common Suspensive Conditions.

Benefits of Suspensive Conditions

Suspensive conditions can be beneficial for both buyers and sellers. For buyers, they provide an opportunity to back out of the contract if they are unable to meet the condition. For sellers, they protect them from being tied to a buyer who may not be able to fulfill their obligations.

Dangers of Vague Suspensive Conditions

It is important that suspensive conditions are clearly defined. If the condition is vague, it can lead to uncertainty and disputes. For example, a suspensive condition that states "the buyer must obtain financing" is vague because it does not specify the amount of financing that the buyer must obtain or the time requirement.

Best Practices for Using Suspensive Conditions

To avoid problems, it is important to use clear and specific language when drafting suspensive conditions. The condition should also be realistic and achievable.

Here are some additional tips for using suspensive conditions:

• Make sure the condition is in writing.

• Be specific about the event that must occur.

• Set a deadline for the condition to be met.

• Consider what will happen if the condition is not met.

If you are unsure about how to use suspensive conditions, it is best to consult with an attorney.

I hope this blog post has been helpful. If you have any questions, please feel free to leave a comment below.

About the Author

This blog post was written by Christine Schutte. We are committed to providing our clients with clear and concise legal advice. We believe that the law should be accessible to everyone, and we strive to make the legal process as easy to understand as possible.

If you have any questions about suspensive conditions, please do not hesitate to contact us. We would be happy to help you.