Conditional contract is an agreement that is enforceable only if another agreement is performed or if another specific condition is satisfied. A conditional contract is also termed as hypothetical contract. This is a contract which states that certain conditions should be satisfied before the parties become bound to carry out the terms of the contract.
The contract is called “conditional” until the conditions listed are satisfied. Both the buyer and the seller can incorporate conditions in the offer. A conditional contract is legally binding, but the obligations under it are suspended until it becomes unconditional.