Definition - What does Condition Precedent mean?
Condition precedent is a contractual stipulation wherein a certain action must take place before fulfilling an obligation.
Insuranceopedia explains Condition Precedent
A contract may, for instance, stipulate that the sale of a building will go through so long as it passes a physical inspection. In this case, the inspection is condition precedent. This stipulation is often part of transactions involving real estate and is usually prescribed by the potential buyer as a safety mechanism.
Condition precedent is also common in wills. The testator may cite certain conditions that must be met before the inheritance is bequeathed to their heirs. The heir may, for instance, have to reach a certain age before acquiring their inheritance.
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