GOOD OPERATING CONDITION Sample Clauses

The "Good Operating Condition" clause defines the requirement that an asset, such as equipment or property, must be in a state that allows it to function properly and safely for its intended use. In practice, this means the item should be free from significant defects, regularly maintained, and capable of performing its normal operations without undue risk or breakdown. This clause is commonly used in leases, sales, or service agreements to ensure that the receiving party obtains an asset that is reliable and fit for use, thereby reducing disputes over the condition of the item at the time of transfer or delivery.