This article discusses the purpose of special condition and the steps to be taken when these conditions are in conflict with standard conditions.
The purpose of special conditions
Special conditions are drafted in instances where the terms particular to a transaction depart from the usual conditions specified in the SC and SCPC. Usually there are two instances when special conditions are inserted, viz.
- The condition is required considering the particular circumstances of a case. For instance, when a seller agrees to pay for defective title insurance (to cover for a defective title), this would have to be done through a special condition. Issues such as these are peculiar are not a part of standard transactions; hence they are to be included specifically.
- They are also included when a transaction requires a deviation from the standard conditions. For instance, when parties to the transaction agree that the deposit money shall be held by the seller’s solicitor as an agent, instead of the standard condition which stipulates that the solicitor would be holding the deposit money as a stakeholder.
Conflict with standard conditions
When a special condition that is incorporated into the contract is in conflict with the standard condition position, the special condition would prevail. But in practice, under such circumstances, the standard condition would be excluded so as to avoid confusion.
When the pre-printed form is purchased from the law stationers, it is important that the amendments to the standard conditions should be expressly made by a special condition at the reverse of the contract form. Simply striking out the condition is not sufficient.
Photo courtesy: Jo Naylor
