Contingent Contract With Example In Tarrant
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FAQ
Example of a Contingency Contract One straightforward example might be a child who agrees with their parent that if they get an A in a particular class, they will get a new bicycle. Of course, the contract may be verbal, and it may be between family members.
When a buyer makes a contingent offer on a house, they're saying, “I want to buy this house, but only if certain conditions are met.” These are the conditions, or contingencies, that can be: The buyer needs to sell their current home first. The house needs to pass a home inspection.
When an event or situation is contingent, it means that it depends on some other event or fact. For example, sometimes buying a new house has to be contingent upon someone else buying your old house first.
An example of a contingent liability that a company should record is possible product warranty costs. This refers to the potential expense a company may incur if they need to repair or replace a product that is covered under warranty. Another example is the threat of a lawsuit by a competitor.
With a contingent offer, you have stated that a certain condition must be met before the sale moves forward. If it doesn't, the contract is void, and the seller can move on to a backup offer received while the sale was contingent.
Your parents might have had one more child than they actually did, and so you could have had another sibling. This sibling that does not exist but could have is also considered a contingent thing. Contingent things are often contrasted with necessary things.
A contingency clause should clearly outline the conditions, how the conditions are to be fulfilled, and which party is responsible for fulfilling them. The clause should also provide a timeframe for what happens if the condition is not met.
