Contingency Clause
Sometimes found in sale contracts (most commonly with new developments), these clauses outline certain conditions that must be fulfilled before the sale will complete. Both buyer and seller may include contingencies in a contract, provided that both parties accept it. For example, a home purchaser may include a contingency that specifies that the sale will not complete until the purchaser obtains a satisfactory home inspection report from a qualified surveyor. In practice, such clauses are more common in new developments where the developer is seeking to exchange contracts before the development is ready and the purchaser has had a chance to carry out investigations of the property. In India, contingency measures are incorporated on a more informal basis prior to the completion of a sale deed, which does not include such clauses.
