Los Angeles, CA asked in Securities Law for California

Q: Can you explain what a "triggering event" is? I keep seeing the term.

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1 Lawyer Answer
T. J. Jesky
T. J. Jesky
Answered

A: A triggering event refers to an occurrence that, once breached or met, it causes another event to take place. Triggering events are written into contracts to prevent or ensure that if something happens the next event will happen.

For example, you want to buy a newspaper at a news stand. When you pay the vendor the price of the newspaper, the triggering event takes place, he hands the newspaper over to you.

If you don't pay your rent, the triggering event takes place, the landlord evicts you from the premises.

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