Concurrently
At the same time; simultaneous performance of obligations by both parties at the same moment or during the same period.
While straightforward in theory, many businesses fail to actively track obligations tied to this concept - often resulting in missed deadlines, unintended renewals, penalties, or loss of contractual rights.
US Law · For business owners and foundersWhat is a Concurrently?
When a contract requires obligations to be performed concurrently, both parties must act simultaneously - or at least be ready and willing to act at the same time. Neither party is required to perform first; each party's obligation is conditioned on the other's simultaneous tender.
Concurrent conditions are most common in real estate closings (buyer tenders payment, seller tenders deed at the same moment) and in contracts for the sale of goods under UCC §2-511. If one party tenders and the other refuses, the tendering party is not in breach - the refusing party is.
Drafting contracts with concurrent obligations requires careful attention to logistics: Who initiates the exchange? What counts as "tender"? What happens if one party is a minute late? These details should be specified to avoid disputes.
In practice, many teams rely on a contract expiry tracking system to stay on top of dates and obligations tied to clauses like this.
Key Elements
Simultaneous Tender
Both parties must tender their respective performances at the same time. Tender means being ready, willing, and able to perform - not necessarily completing performance in the same instant.Condition Precedent to Each Side
Each party's obligation to perform is conditioned on the other party's concurrent tender. This means neither party can demand the other perform without offering their own performance first.Breach Mechanics
If Party A tenders and Party B refuses, Party B is in breach. If neither tenders, neither is technically in breach - but the contract is at a standstill and courts may impose a duty to initiate.Contrast with Sequential Performance
In many service contracts, one party performs first (e.g., contractor builds, then client pays). Concurrent performance is a specific arrangement that must be clearly stated to override this default.Real-World Example
A commercial real estate closing requires the buyer to wire $2M and the seller to deliver a signed deed simultaneously at 10 AM on closing day. The buyer's wire is delayed by two hours. The seller refuses to hand over the deed.
Because performance is concurrent, the seller is within their rights to withhold the deed until payment is received. However, the seller must also tender the deed at the agreed time - they cannot simply wait. Courts look at who failed to tender first to determine breach.
This is why many businesses adopt automated deadline tracking to ensure no critical dates are missed before they pass.
Sample Clause Language
Concurrent Performance ClauseWatch Out For
No party wants to go first
Concurrent obligations can create a deadlock where both parties wait for the other to move. Specify a designated "initiating party" or use an escrow agent to hold funds and documents until both parties perform.Time zone and banking cut-off issues
In real estate and financial transactions, "concurrent" closings across time zones or near banking cut-off times can cause technical default even when both parties act in good faith. Always build in a time buffer.Ambiguity about what "concurrent" means
Contracts often say obligations are "concurrent" without defining what that means operationally. Does it mean same day, same hour, or the exact same instant? Define it precisely to avoid litigation.Don't let concurrently deadlines catch you off guard
Key dates tied to concurrentlys - renewal windows, expiry cutoffs, notice periods - can easily slip through the cracks when tracked manually. Missing them triggers automatic extensions, penalties, or lost rights. ExpiryEdge tracks every critical deadline and sends automated reminders before they're due - so nothing slips.
Instead of relying on spreadsheets or manual follow-ups, a centralized renewal reminder system ensures every deadline is visible, tracked, and actioned automatically.
How to Use This in Your Favor
Use escrow for high-value concurrent exchanges
For large transactions, appoint a neutral escrow agent to hold both payment and deliverables until all conditions are confirmed satisfied simultaneously. This eliminates the risk of one party performing while the other does not.Designate an initiating party
Specify which party goes first (e.g., "Buyer shall initiate wire transfer by 9 AM; Seller shall deliver deed upon confirmation of receipt"). This avoids standoff situations.Related Terms
Frequently Asked Questions
What happens if I perform my obligation but the other party doesn't perform concurrently?
The other party is in breach and you are entitled to remedies including damages or specific performance. Having documentation that you tendered performance is critical - keep wire transfer records, emails, and timestamps.
Is concurrent performance required by default in sales contracts?
Under UCC §2-511, in contracts for the sale of goods, tender of payment and tender of delivery are concurrent conditions unless the contract says otherwise. For service contracts, sequential performance (service first, then payment) is more common.