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LSDefine
Simple English definitions for legal terms
dependent promise
Read a random definition: Stepped-up basis
A quick definition of dependent promise:
A dependent promise is when someone agrees to do something only after someone else has done something first. For example, if you promise to give your friend a ride only after they finish their homework, that's a dependent promise. It's like saying "I'll do this, but only if you do that first."A more thorough explanation:
A dependent promise is a type of promise that is only fulfilled after another obligation has been met by another party. For example, if a company promises to pay a vendor only after the vendor has delivered the goods, this is a dependent promise.
Another example of a dependent promise is a contract that requires one party to complete a task before the other party is obligated to pay. This type of promise is common in construction contracts, where a contractor may promise to complete a project before the owner is obligated to pay.
Dependent promises are important in contracts because they ensure that both parties fulfill their obligations before any payment or other benefits are exchanged. This helps to prevent disputes and ensures that both parties are satisfied with the outcome of the contract.