A term in a contract that says that, on the occurrence of an event, the parties' obligations will end is an example of
A) discharge by frustration.
B) discharge by agreement.
C) condition subsequent.
D) condition precedent.
E) tender of performance.

Question

Quizplus · Accepted Answer

A condition subsequent is a term in a contract that says that on the occurrence of an event, the parties' obligations will end. This means that the contract will be discharged or terminated automatically, without any further action required by the parties. This is distinguishable from discharge by agreement, where the parties mutually agree to end the contract, or discharge by frustration, where the performance of the contract becomes impossible due to an unforeseeable event. Condition precedent means that a particular event or action must occur before the contract becomes enforceable, while tender of performance refers to one party offering to perform their obligations under the contract.

A Term in a Contract That Says That, on the Occurrence