South Carolina Conditional Sales Contract
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FAQ
A conditional contract, also called a hypothetical contract, is a contract agreement that only requires performance once the delineated conditions are met. This legal agreement requires prior performance of another agreement or clause in order to be enforceable.
A conditional sale refers to a transaction in which the purchaser receives possession of and the right to use certain goods, but the title remains with the seller until the performance of a condition is met by the buyer.
Contingent vs. A conditional contract is a more general term meaning any contract containing one or more conditions that must be fulfilled for the contract to be fully binding. Simply put, all contingent contracts are conditional ones but not all conditional contracts are contingent ones.
A conditional contract is an agreement or contract conditional upon a specific event, the occurrence of which, at the date of the agreement, is uncertain. A common example is a contract conditional upon the buyer getting planning permission.
The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality.
The parties to the contract must be competent to make a contract, and not incapacitated by mental incompetency, infancy, or the like. Any contract for an interest in land or any agreement that is not to be performed within one year must be in writing and signed by the party against whom it is seeking to be enforced.
The buyer may have a right to terminate the Contract if he can not obtain a loan for the purchase of the property. Generally, after finding a home, a prospective buyer will meet with a lender to arrange for a loan on the property.
Some contracts contain 'conditional clauses', which mandate that certain events must occur or conditions be fulfilled before the contract is binding or enforceable.
