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Special Condition Agreement

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SPECIAL CONDITION AGREEMENT

This Special Condition Agreement (the Agreement) is made effective as of by and between:

WHEREAS

WHEREAS, Provider is engaged in the business of providing specialized services and has agreed to perform certain services for Client subject to the special conditions set forth in this Agreement; and

WHEREAS, Client desires to retain Provider to undertake the specific scope of work described in Section 1, subject to the payment terms and other conditions set forth herein; and

WHEREAS, the parties intend that the special conditions in this Agreement shall govern and modify any prior agreements or understandings that relate to the same subject matter to the extent expressly set forth below.

1. SCOPE OF WORK

Provider shall perform the services described below. The description constitutes the full and exclusive scope of services under this Agreement unless amended in writing as provided in Section 8.

2. PAYMENT TERMS

Client shall pay Provider for the services performed in accordance with the following terms:

Invoices shall be submitted by Provider and are payable within days of receipt, unless otherwise agreed in writing. Late payments shall incur a late fee of of the overdue amount and interest at the lesser of 1.5% per month or the maximum rate permitted by applicable law.

3. TERM AND TERMINATION

This Agreement commences on and, unless earlier terminated in accordance with this Section, expires on .

Either party may terminate this Agreement without cause by providing the other party at least days' prior written notice. Termination for material breach by either party may be effected upon written notice if the breaching party fails to cure the breach within the cure period specified below.

Termination for cause: If checked, default cure period:

4. CONFIDENTIALITY

For purposes of this Agreement, Confidential Information means non-public information disclosed by one party to the other, whether oral, written, or electronic, that is designated as confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure. Recipient shall (a) hold Confidential Information in strict confidence, (b) not disclose Confidential Information to any third party except as permitted in this Agreement, and (c) use Confidential Information solely to perform its obligations or exercise its rights under this Agreement.

5. NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth below or to such other address as a party may designate by written notice.

6. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of laws principles. The parties submit to the exclusive jurisdiction of the state and federal courts located in that State for resolution of disputes arising out of or relating to this Agreement.

7. ENTIRE AGREEMENT; AMENDMENT

This Agreement, including any exhibits or attachments expressly incorporated herein, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, proposals, and communications, whether written or oral. Any amendment or modification to this Agreement must be in writing and signed by authorized representatives of both parties.

8. MISCELLANEOUS

Neither party may assign its rights or obligations under this Agreement without the prior written consent of the other party, except that Provider may assign to an affiliate or in connection with a merger or sale of substantially all of its assets. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Party A (Provider) Printed Name:

By:

Date:

Party B (Client) Printed Name:

By:

Date:

Enter text✕

What a Special Condition Agreement Is

A Special Condition Agreement is a written contract that documents terms, contingencies, or exceptions that modify a primary transaction or contract. It records specific obligations, timelines, approvals, or waivers that differ from standard terms and creates binding duties between the parties when executed. These agreements are used to clarify contingencies, permit alternative performance, or allocate unique risks. When signed electronically in the United States, they are governed by ESIGN and UETA principles for enforceability, provided parties demonstrate intent, consent, attribution, and durable record retention.

Why Use a Special Condition Agreement

Use a Special Condition Agreement to document deviations, reduce ambiguity, and limit disputes by recording agreed exceptions in writing. Properly executed, it preserves enforceability under ESIGN and UETA and supports clear evidence of party intent and allocation of risk.

Why Use a Special Condition Agreement

Who Typically Uses Special Condition Agreements

Typical parties who use Special Condition Agreements include contracting businesses, buyers and sellers, lenders, and counsel managing exceptions to standard contracts.

  • Real estate buyers and sellers documenting negotiated repairs or title exceptions.
  • Contractors and owners specifying schedule changes, allowances, or site conditions.
  • Lenders and finance teams listing credit conditions, escrows, or funding triggers.

These agreements suit small businesses, corporate contracting teams, legal counsel, and compliance departments seeking precise, written exceptions that survive contract review.

Representative Roles and Use Cases

General Counsel

Corporate attorneys review Special Condition Agreements to ensure exceptions are legally enforceable, align with governing law, and limit exposure. They verify that language meets consent and record requirements under ESIGN/UETA and coordinate any required notarization, witness, or approval steps before execution.

Project Manager

Project managers use these agreements to document schedule changes, acceptance criteria, and site-specific conditions. Clear, signed special conditions reduce delivery disputes, help manage subcontractor scopes, and create a documented change history for financial and compliance audits.

Core Elements Every Agreement Should Include

A professional Special Condition Agreement includes clear conditions, parties, dates, remedies, evidentiary exhibits, and an execution block with authority and notarization details.

Clear Condition

State the condition using measurable criteria, trigger events, and a deadline. Include who must act, what constitutes satisfaction, and any documentation required to prove the condition's completion.

Parties

Identify each party by full legal name and capacity. For entities, include state of formation and authorized signatory title to avoid disputes over authority and identity.

Effective Date

Specify the effective date and any expiration using MM/DD/YYYY format. State whether the date amends the primary agreement's term or solely governs the special condition's lifecycle and remedies.

Remedies

Describe remedies or penalties for unmet conditions, including cure periods, liquidated damages, termination rights, or escrow instructions. Tie remedies to measurable outcomes where possible.

Exhibits

Attach referenced exhibits, plans, or approvals and label them clearly. Provide version dates and describe how exhibit discrepancies are resolved to prevent interpretive disputes.

Execution Block

Include signature lines, printed names, titles, dates, and any required notarization or witness blocks. State whether electronic signatures are permitted and the agreed authentication level.

Step-by-Step: Complete and Execute the Agreement

Follow these steps to complete and execute a Special Condition Agreement accurately and in enforceable form.

  • 01
    Draft: Describe the condition clearly, reference contract sections
  • 02
    Review: Have counsel confirm language and authority to sign
  • 03
    Sign: Obtain signatures and dates from all required parties
  • 04
    Record: File with transaction file; notarize or witness as required

Set Up an Online Workflow

Configure an online workflow to collect, authenticate, and archive Special Condition Agreements with consistent routing and field rules.

Field Configuration
Signing order and recipient routing Choose sequential or parallel routing with signer roles defined
Authentication method, KBA, SMS, or email Email link, SMS code, or KBA options
Field types and validation rules Use required fields, date format MM/DD/YYYY, and conditional logic
Document retention and export settings Set PDF/A export, audit trail retention, access controls

Platform and Integration Requirements

Use platforms that accept PDF/DOCX uploads, integrate with CRM or cloud storage, and support strong authentication for e-signing.

  • Supported formats: PDF, DOCX, HTML, Excel
  • Integrations: Salesforce, NetSuite, Google Workspace, Microsoft 365
  • Authentication: Email, SMS, KBA, SSO options

Typical Routing for Execution

Typical routing for a Special Condition Agreement involves drafting, approvals, signing, and distributing executed copies to all stakeholders.

  • Prepare: Upload template and insert condition-specific fields
  • Authorize: Collect internal approvals and legal sign-off
  • Sign: Use electronic signature or in-person signing as appropriate
  • Deliver: Send final executed copies to parties, lender, and file

Common Deadlines and Timing Considerations

Key deadlines for Special Condition Agreements often relate to funding, inspection periods, notice deadlines, and document retention requirements.

Typical contractual deadline and timing examples:

Inspection and cure periods commonly range from 3 to 30 days

Tax reporting and information returns timing:

Provide corrected forms before IRS deadlines to avoid penalties

Notary and RON timing requirements:

Schedule in advance; RON requires identity proofing and recorded session

Lender funding cutoff and escrow deadlines:

Funding often depends on executed conditions and cleared contingencies

Record retention start date and period:

Retention begins at execution and follows federal or industry rules

Key Milestones Across the Agreement Lifecycle

Milestones show the Special Condition Agreement lifecycle from negotiation through execution, recording, and post-termination obligations.

01

Negotiation

Propose and agree on condition language and supporting exhibits.

02

Approval

Internal approvals and legal sign-off completed prior to signing.

03

Execution

All parties sign; notarize or witness if required by jurisdiction.

04

Post-termination

Monitor obligations, retain records, and close or renew conditions.

How This Agreement Differs from Other Contract Instruments

Compare Special Condition Agreements with common contract instruments to choose the correct mechanism for documenting exceptions or supplemental terms.

Document Type Special Condition Amendment Rider Addendum
Purpose targeted exceptions modify terms attach to contract supplementary terms
Typical use contingencies broad changes transaction-specific extra disclosures
Execution timing before closing any time at signing any time
Legal effect binding when signed alters contract operative with contract clarifies obligations

eSignature Vendor Pricing and Feature Snapshot

Compare starting prices and core features across leading eSignature vendors to assess cost and compliance fit for executing Special Condition Agreements.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Security and Compliance Features to Expect

Encryption: TLS 1.2/1.3 in transit, AES-256 at rest
Audit Trail: Detailed timestamps, IPs, and action logs
Certifications: SOC 2 Type II, ISO 27001, PCI DSS
HIPAA: BAA available; supports HIPAA compliance
Regulatory Support: ESIGN and UETA compliance frameworks
Accessibility: WCAG 2.0 Level AA support

Penalties and Risks from Errors or Omissions

Tax Penalties: $60–$330+ per late information return
Unenforceability: Missing signatures can void terms
I-9 Violations: Paperwork fines $281–$2,789
Notary Errors: Improper notarization may invalidate document
Intent Disputes: Unclear consent risks litigation
Escrow Delays: Missed conditions can delay closings

Common Preparation Mistakes to Avoid

  • Vague language that fails to specify measurable conditions or deadlines, leaving parties to dispute whether a condition was satisfied.
  • Mismatched party names or incorrect signatory authority, especially when corporate entities use informal or abbreviated names in signature blocks.
  • Failing to attach or reference necessary exhibits, plans, or approvals that the special condition depends upon, making it ambiguous.
  • Skipping notarization or witness steps where state law or lender requirements mandate them, causing title or funding issues.

Practical Tips for Accurate and Efficient Agreements

Best practices reduce ambiguity and accelerate execution when drafting and implementing Special Condition Agreements.

Use precise, measurable language
Define triggers, deadlines, and measurable outcomes. Replace subjective terms with objective criteria, attach any reference exhibits, and require the evidence or certification that will prove condition satisfaction.
Confirm signatory authority and identity
Verify each signer's authority to bind the entity. For corporate signers, include authorized signatory titles or resolutions. Mismatched names or missing authority can render the agreement unenforceable.
Specify remedies and cure periods
Clearly describe consequences for noncompliance, including cure periods, liquidated damages, and termination rights. Tie remedies to objective milestones and avoid open-ended remedies that invite disputes.
Document attachments and version control
Attach dated exhibits and use version stamps. State that the attached exhibits form part of the agreement to prevent later claims of inconsistency or omission.

Practical Examples from Real Organizations

Real-world examples show how Special Condition Agreements solve unique transaction issues across sectors and reduce execution friction.

Martin Properties

A regional property manager needed to record negotiated repair conditions and tenant move-out obligations without in-person signatures.

  • Used electronic agreements to capture precise exceptions quickly.
  • "I can process and execute all of these documents online with 100% compliance and built-in security. Whether on mobile or working offline, I can get forms back to their necessary parties efficiently."

Optica Ventures

A venture portfolio manager needed to document tailored funding contingencies and investor approval conditions across multiple deals.

  • Streamlined execution across distributed investors and counsels.
  • "The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers."

Frequently Asked Questions About Special Condition Agreements

Answers to common questions about enforceability, notarization, electronic signatures, amendments, and revocation of Special Condition Agreements.


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