A kind of conditional contract is an option agreement. The possibility is given to a party to buy a particular property within a specified period. A conditional contract, also called a hypothetical contract, is a contractual agreement that requires performance only if the defined conditions are met. This legal agreement requires the prior execution of another agreement or clause in order to be enforceable. If the other agreement or condition is met, the conditional contract is enforceable and the parties are required to perform the terms of the contract. (c) The contractual conditions must be complete and secure. If the parties have not entered into their agreement or if part of the contract is unclear, the contract (or part of it) may not be legally enforceable. However, there are certain situations in which there are conditional agreements: the buyer can take possession of the good as soon as the contract is in force, but the property only owns it once he has paid for it in full, which is usually done in instalments. If the company is in arrears in its payments, the seller will repossess the item. As noted above, conditional sales contracts are typically used by businesses to finance the purchase of machinery, office equipment and furniture. If the parties are waiting for permission to sell, buy, etc., it may be a better idea to wait for permission rather than entering into a conditional agreement. Parties should consider their best options.
Conditional contracts should never be concluded if there is another unconditional contract of sale or purchase. Often, the amount the person owes after the agreement ends depends on how the agreement ended. The issues mentioned above are by no means a definitive list of considerations, but it at least highlights that conditional contracts are more involved than the usual transfer contracts for an unconditional sale/purchase of a home and, therefore, technical advice is indispensable to ensure that you fully understand the effects of the conditional contract and that sufficient guarantees are included in the contract to protect your position. It is usually linked to land transactions with a developer. In general, developers will not enter into an unconditional contract for the purchase of land, unless the building permit is available for the development of the country. However, before proceeding with a construction application, the contracting authority wishes to ensure that he has the land under contract so that, if his construction application is successful, he can continue to purchase the land. . . .