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Legal Speak Made Easy: “Suspensive” or “Resolutive” Condition?

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You will find suspensive and resolutive conditions in many types of contracts, including property sale agreements and the like. A suspensive condition (a bond clause is a commonly-encountered example) provides that the contract is “suspended” until the condition is fulfilled – e.g. a sale becomes binding only when the buyer’s bond is granted. A resolutive condition is the exact opposite. It says that the contract is effective immediately, but will be retrospectively terminated if the condition is fulfilled – an example would be “this contract terminates if the seller fails to supply approved plans to the buyer by (due date).”