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The legal mechanics

Conditions precedent

Why signing a deal isn't the same as completing it — and what has to happen in between.

Step 1 of 6

Signing, not completion

The buyer and seller sign the SPA (sale and purchase agreement) — but that's not the end. The deal only actually completes once certain conditions are satisfied.

This is a simplified illustration of how conditions precedent typically work, not legal advice or a description of any specific transaction — real deals vary by jurisdiction and structure. For real examples, read the daily issues.