Nature of Clauses

There are two (2) types of provisions/clauses that are contained within contracts, warranties and conditions.


A condition is something that goes to the heart of the contract and needs completion one way or the other, such as a due diligence condition. An inability to satisfy a condition usually allows the affected party an opportunity to terminate the contract should they wish or to proceed on renegotiated terms.


Warranties are traditionally statements, such as a warranty that the property will be clean at settlement. A failure to give a correct warranty, or to be able to fulfill the warranty at the necessary time may allow an affected party to make a claim for damages against the other butis unlikely to prevent settlement from occurring.

Drafting Clauses:-

When drafting clauses it is essential to keep in mind both the purpose the clause will serve and the party on whose behalf it is being drafted for. Be aware of what you want to achieve with the clause, the period the party will have to satisfy the clause and the consequences of failing to satisfy the clause. Avoid using vague terms where possible and always ensure that the clause serves the purpose for which it was prepared.

If there is ever any doubt on the nature or wording of clauses required you are invited to contact myself to discuss the issues.