Provided that

Definition

'Provided that' is a phrase used in contracts to introduce a condition that must be met for the agreement to be valid or enforceable. It sets a specific requirement that, if not fulfilled, can release a party from their obligations or prevent the contract from taking effect. This phrase highlights the importance of conditions and helps clarify the expectations of the parties involved in the contract.

5 Must Know Facts For Your Next Test

1. 'Provided that' clauses can be used in various types of contracts, including leases, sales agreements, and employment contracts.
2. The fulfillment of a 'provided that' condition is often necessary for triggering performance or payment obligations.
3. Failure to meet the condition specified by 'provided that' may allow one party to terminate the contract or seek legal remedies.
4. These conditions are generally interpreted based on the plain meaning of the language used and any relevant context surrounding the contract.
5. It's important to clearly outline the terms associated with 'provided that' to avoid ambiguity and potential disputes between parties.

Review Questions

• What role does 'provided that' play in establishing conditions within a contract?
  • 'Provided that' serves as a crucial phrase in contracts, introducing specific conditions that must be met for the contract to be enforceable. It essentially acts as a gatekeeper, ensuring that certain requirements are fulfilled before obligations take effect. This helps both parties understand their responsibilities and what must happen for the contract to remain valid.
• How can failing to meet a condition introduced by 'provided that' impact the enforceability of a contract?
  • If a condition set forth by 'provided that' is not met, it can lead to significant consequences, such as allowing one party to terminate the contract or seek damages. This means that the rights and obligations of each party can change dramatically based on whether the condition is fulfilled. Understanding this impact emphasizes the necessity of clear communication regarding conditions when drafting contracts.
• Evaluate how 'provided that' interacts with other contractual elements like waiver and contingency provisions.
  • 'Provided that' interacts closely with waiver and contingency provisions by clarifying conditions under which obligations may arise or be released. For instance, if a party waives their right concerning a 'provided that' condition, they may lose their ability to enforce related terms in the contract. Similarly, contingencies may specify alternate outcomes if 'provided that' conditions are not met, showcasing how these elements work together to create comprehensive contractual frameworks.

Related terms

Condition Precedent: 'Condition precedent' refers to an event or state of affairs that must occur before a party is obligated to perform under a contract.

Contingency: 'Contingency' is a provision in a contract that specifies certain conditions or events that will trigger obligations or rights for the parties involved.

Waiver:

'Waiver' refers to the voluntary relinquishment of a known right or privilege, which can affect the enforcement of conditions set in a contract.