What kind of provision within a contract makes performance conditional upon a stated event?

A contingency provision within a contract establishes that certain obligations or performance are conditional upon the occurrence of a specified event. This means that the parties to the contract have agreed that certain actions, typically related to closing a sale or completing a transaction, will only be carried out once the specified condition is met.

For instance, in real estate transactions, a common contingency might be that the sale is subject to the buyer obtaining financing or a satisfactory home inspection. If the specified event does not occur, the parties may be released from their obligations under the contract without penalty.

Understanding how contingencies work is crucial for real estate professionals, as they can significantly impact the transaction process and the responsibilities of the involved parties. The other terms, while related, do not specifically define the nature of performance being conditional on an event in the same way that a contingency does.