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Resolutive condition meaning

What does Resolutive condition mean?
In legal practice, a resolutive condition is a term that brings an existing right, obligation or contract to an end if a specified event occurs. It operates prospectively: accrued rights remain, but future performance ceases. It is the converse of a suspensive condition (condition precedent). Across England & Wales, Northern Ireland and Ireland the concept is usually described as a condition subsequent; resolutive condition is the standard Scots law terminology. The expression is descriptive rather than statutory, though recognised in case law and legal commentary across the UK and Ireland. Key legal features and usage include: - Common in commercial contracts (for example, automatic termination if a required regulatory approval is not obtained by a longstop date) and, in Scotland, also seen in some property and leasing contexts. - May provide automatic termination (ipso facto) or grant a contractual right to terminate; clear, unambiguous drafting is essential. - Effect can be limited by statute and public policy, including restrictions on insolvency-related ipso facto clauses, consumer fairness rules and illegality. Its practical role is to allocate risk by allowing parties to proceed while preserving an agreed exit if the specified event occurs.
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View the related Practice Notes about Resolutive condition

PRACTICE NOTES
Scottish Private Client Practice Glossary: Succession, Trusts, Guardianship and Property Terms with England and Wales Equivalents

A glossary of frequently used terms and phrases in Scottish Private Client law, with the closest England and Wales equivalents (where applicable) and links to helpful websites Ab intestato Meaning From someone who dies without a will; describes property taken under the laws of intestate succession. Nearest English equivalent None Action of specific implement Meaning A court action seeking an order compelling a party to carry out a particular act. In Scotland there is no division between equitable and legal remedies, unlike England and Wales. Nearest English equivalent Specific performance (an equitable remedy for breach of contract that can be ordered alongside, or in place of, damages) Advance notice Meaning An entry in the relevant property register that protects the grantee of a deed intended for registration in the Land Register of Scotland. The protected period of 35 days begins on the day after registration....

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PRACTICE NOTES
Scots Property Law Glossary: Key Terms with England and Wales Equivalents, Registers, Land Registration and Conveyancing Practice

This glossary outlines commonly used terms and phrases in Scottish property law, together with the closest England and Wales equivalents (where appropriate), and signposts guidance on differences between Scottish property transactions and law, as well as useful property-related websites. A non domino disposition Meaning A disposition granted by someone with no title to the property. Formerly, this could regularise a defective title where, after registering a non domino disposition, the grantee possessed the property openly, peaceably and without judicial interruption for ten years. Since 8 December 2014, with the commencement of the Land Registration etc (Scotland) Act 2012 (LRE(S)A 2012), a party seeking to obtain title to land where no owner can be traced must comply with the prescriptive claimant provisions in LRE(S)A 2012, ss 43–45 before submitting an a non domino disposition for registration. Nearest English equivalent None, although possessory title is similar. Action of specific implement Meaning A court action seeking an order compelling a party to perform a specified...

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PRACTICE NOTES
Suspensive conditions in Scottish property missives: drafting, negotiation, longstop dates, purification/waiver, risk allocation, and distinctions from resolutive conditions and options

In Scottish conveyancing, suspensive conditions within missives are indispensable, allowing parties to conclude a binding contract while postponing particular obligations until specified requirements are fulfilled. When precisely drafted, they offer certainty, curb risk, and protect both purchasers and sellers by ensuring crucial matters—such as planning permissions, finance, or due diligence—are resolved before completion. This Practice Note summarises the legal framework, practical considerations, and proven techniques for drafting and negotiating suspensive conditions in missives. Transactional context Historically, Scottish property lawyers prided themselves on the rapid conclusion of missives for the sale and purchase of heritable property. Owing to the increased length and detailed terms in offers for both domestic and commercial assets, the time needed to reach conclusion has grown in step. Additional time required to secure loan offers from lenders has also affected the residential market and significantly slowed the conclusion of missives. Missives for buying and selling heritable property commonly address issues beyond pure property points, for example: compliance with the relevant tax authorities’...

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