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How is Material Condition defined in a legal contract?

• Material Condition means a condition or requirement relevant to a regulatory approval that, when considered alone or collectively, could have a significant adverse impact, or significantly diminish the benefits expected from a given agreement if the condition or requirement was known at the agreement's commencement. Seen in 6 SEC filings
• Material Condition means a condition which is highly relevant to the subject activity authorized. Seen in 5 SEC filings
• Material Condition means a condition or requirement associated with a Government Approval that, either individually or when aggregated with other conditions or requirements, would substantially reduce the anticipated benefits derived from the completion of the transaction contemplated by an agreement, which could not have been reasonably anticipated by the affected party. Seen in 5 SEC filings
• Material Condition means any pre-established, subsequent condition or obligation likely to have a significant adverse effect if complied with. Seen in 4 SEC filings
• Material Condition means a condition relevant to the Occupancy Agreement.
  Seen in 1 SEC filing
• Material Condition means any conditions that are critical and adverse to the involved entities and that significantly differ in character, scale or degree from conditions commonly imposed by such approvals. Seen in 1 SEC filing

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Which definition should you use?

🤔 has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

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Genie Definition 1

Material Condition means a requirement linked to a regulatory or government approval, impacting the expected benefits of an agreement.

Relevant Contract Types

• Purchase Agreement
• Merger Agreement
• Franchise Agreement

Relevant Circumstances

• Acquisition of a new business
• Entering a new regulatory environment
• Undertaking a new project subject to government oversight

Relevant Sectors

• Finance
• Healthcare
• Real Estate
• Information Technology

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Genie Definition 2

Material Condition means a condition associated with an occupancy or activity authorization.

Relevant Contract Types

• Lease Agreement
• Work Authorization Agreement

Relevant Circumstances

• Renting a property for business purposes
• Engaging in activities requiring special license

Relevant Sectors

• Real Estate
• Construction

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Genie Definition 3

Material Condition means an adverse condition that varies materially from customary approvals.

Relevant Contract Types

• Loan Agreement
• Partnership Agreement

Relevant Circumstances

• Securing a loan for business purposes
• Establishing a partnership for a collaborative business venture

Relevant Sectors

• Finance
• Technology
• Manufacturing

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