Conditional Contract

A conditional contract is an agreement that becomes legally binding only when certain specific conditions are met. For example, if you agree to buy a house, but the sale is contingent on the house passing an inspection, the contract is conditional. If the inspection fails, the contract is void, and you are not obligated to proceed with the purchase. This type of contract clearly outlines the conditions required for it to take effect, providing both parties with protection and clarity regarding their obligations.