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Condition: Definition, Example and Related Terms

What is a Condition ?

In the world of commercial contracts, a 'Condition' is a specific requirement or rule that all parties involved in the contract must follow. Just like when your parents tell you, 'You can only go out to play once you've finished your homework', they're setting a condition for you to play. In a contract, conditions might be things like 'The goods must be delivered by a certain date' or 'The payment must be made in full before the service is provided'. These conditions help to make sure that everyone knows what they need to do, and when they need to do it by.


  • Scenario Description
    A business is hiring a company to design a website for them. The business wants the website to be finished and live by the end of the month. In this scenario, the condition in the contract might be something like, 'The website must be designed, built and live by the 30th of the month.' This lets the website design company know exactly when the business needs the website to be finished by. If the website isn't live by the 30th of the month, the business could be allowed to end the contract or ask for a discount.
    A company is buying a large quantity of products from a supplier. The company wants to make sure that the products are delivered on time and in good condition. In this case, the condition in the contract could be, 'The products must be delivered by the 15th of the month, and must be in good, sellable condition.' This sets clear expectations about when and how the products should be delivered. If the products are late or damaged, the company could have the right to refuse the delivery or ask for a refund.