ESSENTIAL CONDITION Clause Samples

An Essential Condition clause defines a specific requirement or obligation that is fundamental to the performance of a contract. If this condition is not fulfilled, the affected party may have the right to terminate the agreement or refuse to proceed with their own obligations. For example, in a sales contract, timely delivery of goods might be designated as an essential condition. The core function of this clause is to clearly identify which terms are so critical that their breach justifies significant remedies, thereby allocating risk and ensuring both parties understand the importance of certain contractual obligations.