Which of the following statements is the best description of a 'condition subsequent'?
A)A term in a contract not essential to the main purpose of the contract,non-performance of which will not entitle the plaintiff to rescind the contract.
B)A term in a contract which provides that the contract will terminate on the happening of a particular event.
C)A term which must be satisfied before a contract can come into existence.
D)A term in a contract,the consequences of breach of which cannot be determined until after the breach has occurred and the seriousness of the effects of the breach can be ascertained.

Question

Quizplus · Accepted Answer

A 'condition subsequent' is a term in a contract which provides that the contract will terminate on the happening of a particular event. This means that if the specified event takes place, the contract will terminate automatically without the need for any further action. In contrast, a 'condition precedent' is something which must happen before a contract can come into existence. Option A describes a non-essential term, and option D refers to a term with uncertain consequences.

Which of the Following Statements Is the Best Description of a 'Condition