Define Conditional Contract Agreement
The buyer can take possession of the property as soon as the contract is in force, but he does not own the property until after having paid for it in full, which is usually done in instalments. If the company is in arrears in its payments, the seller will repossess the item. (c) The contractual conditions must be complete and secure. If the parties have not entered into their agreement or if part of the contract is unclear, the contract (or part of it) may not be legally enforceable. For specific legal advice on conditional contracts or other contractual agreements with developers, contact Claire McSorley in our real estate team or email your request to realestate@herrington-carmichael.com; Call us on 01276 686222 or visit our website www.herrington-carmichael.com/contact/ This agreement also gives you the possibility that the seller will require additional payment in the future. This provision provides a greater incentive for a seller to sell if they feel that the buyer can generate more value in the future. For example, if the buyer cannot obtain a building permit for the entire land and requests a building permit gradually, the seller can benefit from the increase in the value of the land as a result of the subsequent granting of the permit. We propose that a buyer keep this provision in reserve and not offer it, unless they are invited to do so. The contract is called “conditional” until the conditions mentioned are met. Both the buyer and the seller can include conditions in the offer. A conditional contract is legally binding, but its obligations are suspended until it becomes unconditional. A conditional sales contract also protects the seller when the buyer is in arrears in the necessary payments.
Since the goods are transferred to the buyer only at the end of the conditions, the seller remains the rightful owner for the duration of the contract. This allows the seller to legally take back or recover the property, as they do not have to initiate costly seizure proceedings against the buyer after the early transfer of a title. A conditional offer is an agreement between two parties for an offer to be made if a particular condition is met….