Which of the following is correct with regard to conditions subsequent?
A) Conditions subsequent are quite common in contracts.
B) A "sale or return" contract is an example of a contract with a condition subsequent.
C) A condition subsequent must occur before performance is due under a contract.
D) All of these are correct.

Question

Quizplus · Accepted Answer

A condition subsequent is a condition that, when it occurs, can terminate a party's obligation under a contract. A "sale or return" contract is an example where the buyer's obligation to pay can be terminated if they return the goods. Conditions subsequent are not necessarily common in all types of contracts (A is incorrect), and they occur after the performance of the contract has begun, not before (C is incorrect).

Which of the Following Is Correct with Regard to Conditions