Conditional Upon Closing Clause Samples

The "Conditional Upon Closing" clause establishes that certain obligations or actions outlined in an agreement will only become effective once the closing of a transaction has occurred. In practice, this means that parties are not required to perform specific duties, such as transferring assets or making payments, until all closing conditions are satisfied and the transaction is formally completed. This clause ensures that neither party is prematurely bound to perform before the deal is finalized, thereby protecting both sides from unnecessary risk if the transaction fails to close.