What does a conditional contract require?

A conditional contract specifically requires the fulfillment of certain conditions for it to become enforceable. In such contracts, specific events or criteria must be met before the parties involved are obligated to perform their respective duties. For example, a life insurance policy may come into effect only after the insured pays the first premium or after a health examination is passed. This means that until these specified conditions are satisfied, the contract is not binding, which is the hallmark of a conditional agreement.

While other aspects like mutual consent, written documentation, and notarization can be important in various types of contracts, they are not defining features of conditional contracts. Mutual consent is a broad principle applicable to all contracts, and written documentation or notarization can depend on the type of agreement that’s being executed, but they do not specifically pertain to the conditional nature of a contract. Therefore, the essence of a conditional contract revolves around the need for specific prerequisites that must be resolved before the contract obligations are activated.