Conditional contracts—property

Copyright © 2025 LexisNexis
Published by a LexisNexis Property expert
Practice notes

Conditional contracts—property

Copyright © 2025 LexisNexis

Published by a LexisNexis Property expert

Practice notes
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Contracts are often drafted on the basis that a condition or conditions must be satisfied before completion takes place (a condition precedent). Common conditions are:

  1. •

    obtaining planning permission

  2. •

    obtaining a third party’s consent (for example superior landlord’s consent)

  3. •

    a viability or site assembly condition

It is crucial that the terms of the condition are clear and that the contract addresses how, when and by whom the condition should be satisfied, whether a party has the ability to waive the condition and termination rights in the event that the condition is not satisfied by a specified date.

Certainty

If the condition is so vague or indefinite that the intention of the parties’ cannot be ascertained with reasonable certainty, the condition is void for uncertainty, as was the case in Lee-Parker v Izzet, where the contract provided that a sale was subject to the buyer obtaining a satisfactory mortgage.

Fulfilment

If the condition is in the hands of one party, the other party should ensure that the first party is obliged to use an appropriate endeavours obligation

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Jurisdiction(s):
United Kingdom
Key definition:
Completion definition
What does Completion mean?

means completion of this agreement in accordance with clause[s] [insert number of the clause(s) dealing with completion of the agreement];

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