Legal Speak made Easy - “Suspensive” or “Resolutive” Condition?

“Suspensive” or “Resolutive” Condition?

Suspensive and Resolutive conditions

You will find suspensive and resolutive conditions in many types of contracts, including property sale agreements and the like. A suspensive condition (a bond clause is a commonly-encountered example) provides that the contract is “suspended” until the condition is fulfilled - e.g. a sale becomes binding only when the buyer’s bond is granted. A resolutive condition is the exact opposite. It says that the contract is effective immediately, but will be retrospectively terminated if the condition is fulfilled – an example would be “this contract terminates if the seller fails to supply approved plans to the buyer by (due date).”

Provided by Anthony Whatmore & Company

Anthony Whatmore

© DotNews. All Rights Reserved.


The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice.

Search By Reference


Stay updated on the latest Property News

Property Management Banner