Conditions Precedent | Practical Law

Conditions Precedent | Practical Law

Conditions Precedent

Conditions Precedent

Practical Law Glossary Item 7-382-3355 (Approx. 2 pages)

Glossary

Conditions Precedent

This term has a number of meanings. In the context of:
  • Corporate, the conditions in a contract that must be satisfied before the agreement or certain parts of the agreement come into force.
  • Finance, a condition in a loan agreement that the borrower must satisfy before it may request a drawdown and the lender is obligated to lend. Unless otherwise provided, the rest of the loan agreement will be binding on the borrower on execution and it will be obligated to pay fees and comply with the terms of the loan agreement.