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 the above are correct.

Question

Quizplus · Accepted Answer

Condition subsequent is a provision in a contract that makes the occurrence of a future event terminate or modify the contract. It is not very common in contracts, and it is not required to occur before performance is due. A "sale or return" contract is an example of a contract with a condition subsequent because the contract becomes terminated if the buyer decides to return the product. Therefore, the correct statement is B.

Which of the Following Is Correct with Regard to Conditions