Which of the following correctly expresses an important difference between a condition precedent and a condition subsequent?
A) The occurrence of a condition precedent keeps a contract alive, whereas the occurrence of a condition subsequent terminates the contract.
B) The contract is discharged if the condition precedent occurs, whereas the parties must be given time to "cure" if the condition subsequent occurs.
C) A condition precedent occurs before the parties reach an agreement, whereas a condition subsequent happens after the parties reach an agreement.
D) A condition precedent is governed by the Uniform Commercial Code (UCC), whereas a condition subsequent is governed by the Uniform Computer Information Transaction Act (UCITA).

Question

Quizplus · Accepted Answer

A condition precedent is a condition that must occur before the parties are obligated to perform under a contract. If the condition precedent does not occur, the parties are not bound to perform. On the other hand, a condition subsequent is a condition that terminates the parties' obligations to perform if it occurs. Thus, the occurrence of a condition subsequent terminates the contract, while the occurrence of a condition precedent keeps the contract alive.

Which of the Following Correctly Expresses an Important Difference Between