Definition for : Condition precedent
In the context of the "Closing" of a transaction, such as an Equity or Bond issue, a loan or the sale of an asset, the "conditions precedent" (also called "CPs") are the conditions which need to be satisfied for the Closing to take place, such as (i) "Representations and warranties" made by the borrower/seller; and (ii) "free title" on the Assets given as borrowing Collateral. Alternatively the relevant CP must be waived by the lender or acquirer.
(See Chapters Chapter 26 Value and corporate finance and Chapter 43 Corporate governance of the Vernimmen)
To know more about it, look at what we have already written on this subject