Stipulation

A stipulation is a condition, requirement, or provision specified in a legal or formal agreement. It typically refers to a specific term or agreement that must be met for the contract or arrangement to remain valid and enforceable. Stipulations serve to clarify the obligations of the parties involved and ensure that all parties understand their responsibilities.

Stipulation meaning with examples

• In the contract for the sale of the house, one stipulation was that the buyer must secure financing within 30 days. Failure to meet this stipulation could result in the cancellation of the agreement. Both parties understood how crucial this condition was for the transaction's success, making it a point of emphasis during discussions and negotiations to avoid any confusion.
• The athlete agreed to participate in the charity event under the stipulation that his travel expenses would be covered. This arrangement allowed for a clear understanding between the event organizers and the athlete, ensuring that all logistical matters were addressed. Consequently, it ensured that the athlete could focus entirely on supporting the cause without worrying about expenditures.
• During the negotiation of the partnership agreement, a stipulation was included that both parties would contribute equally to the startup costs. This condition was vital to build trust and fairness in the partnership. Each party recognized the importance of this stipulation, as it set the foundation for future financial collaboration and mutual accountability.
• In the divorce settlement, a stipulation outlined the custody arrangement for the children, ensuring both parents had agreed on the terms. This included provisions for visitation and holiday schedules, allowing for stability in the children's lives. Both parties were aware that adhering to this stipulation was essential for maintaining an amicable relationship post-separation.