Legal Definitions - triggering condition

A triggering condition is a specific event or circumstance that must occur before a particular legal right, obligation, or consequence becomes active or enforceable. It acts as a prerequisite; until this condition is met, the subsequent legal action or effect remains dormant.

• Example 1: Real Estate Contract

  A contract for the sale of a commercial property includes a clause stating that the buyer's obligation to finalize the purchase is conditional upon them successfully obtaining all necessary zoning permits for their intended use within 90 days. If the permits are not secured within that timeframe, the buyer can withdraw from the contract without penalty.

  In this scenario, the triggering condition is the buyer successfully obtaining the required zoning permits. Until this condition is met, the buyer's obligation to complete the purchase is not fully binding. Once the permits are secured, the condition is triggered, and the buyer is then legally committed to proceeding with the acquisition.

• Example 2: Employment Agreement

  An executive's employment contract specifies that a severance package will be paid if their employment is terminated "without cause" within two years of a change in company ownership. If the termination is "for cause" (e.g., gross misconduct), no severance is paid.

  Here, the triggering condition for the executive to receive the severance package is their termination "without cause" following a change in company ownership. If their employment ends under different circumstances, this specific legal obligation (payment of severance) does not become active.

• Example 3: Will and Testament

  A will stipulates that a specific sum of money will be distributed to a named charity, but only if the testator's (the person making the will) spouse has predeceased them. If the spouse is still alive at the time of the testator's death, the money goes to the spouse instead.

  The triggering condition for the charity to receive the inheritance is the testator's spouse having died before the testator. If this condition is met, the legal right of the charity to receive the funds becomes active. If the spouse is alive, the condition is not triggered, and the charity does not inherit.