Which of the following is a contract with a condition subsequent?
A) Roger bought a VCR but he may return the VCR within ten days and get all of his money back.
B) Rhonda enters into a contract to buy a new car conditional upon her getting a loan from her bank.
C) Both (a) and (b) are examples of a condition subsequent.
D) Neither (a) nor (b) is an example of a condition subsequent.

Question

Quizplus · Accepted Answer

A condition subsequent is an event or state of affairs that, if it occurs, will terminate a party's obligation to perform under a contract. In option A, Roger's ability to return the VCR within ten days is a condition subsequent that can terminate his obligation to keep the VCR.

Which of the Following Is a Contract with a Condition