What is defined as a condition in a contract that must be satisfied for the contract to be enforced?

The term that describes a condition in a contract that must be satisfied for the contract to be enforced is "contingency." In real estate transactions, a contingency allows parties to outline specific conditions or requirements that must be met before the contract becomes binding. For example, a common contingency in a real estate contract would be that the buyer's offer is subject to obtaining financing or that a satisfactory home inspection must occur. If the specified condition is not fulfilled, the party that benefits from the contingency can typically withdraw from the contract without penalty.

While other terms like waiver, performance clause, and agreement have their own definitions in contract law, they do not directly address the concept of a condition that must be satisfied for a contract to be enforced. A waiver refers to the voluntary relinquishment of a known right, a performance clause relates to the obligations of the parties to fulfill their roles in the contract, and an agreement is a mutual understanding between parties entering into a contract. These concepts are related but distinct from the specific definition of a contingency.