“Condition subsequent” is a legal term used to describe a condition or event that, once it occurs, terminates or modifies a previously established legal obligation or contract. In other words, it’s a condition that, if it happens after a contract is formed, can release one party from their obligations under that contract. For example, in a contract for the sale of goods, a condition subsequent might be the failure of one party to deliver the goods on time, which could then relieve the other party from their obligation to pay for those goods. Condition subsequent clauses are often included in contracts to provide a mechanism for altering or terminating the agreement based on certain specified events or circumstances.
n. 1) in a contract, a happening which terminates the duty of a party to perform or do his/her part. 2) in a deed to real property, an event which terminates a person’s interest in the property. Examples: if the Dingbat Company closes its business, a supplier will not be required to fulfil its contract and deliver gadgets to the company and the contract will terminate; if daughter-in-law Beatrice terminates her marriage to Reggie Fauntleroy, her interest in the real property will terminate and revert to the grantors, Mom and Dad Fauntleroy.
A condition subsequent is a legal term that refers to a condition that, if it occurs after the execution of a contract, will terminate or modify the contract. In other words, it is a condition that must be satisfied in order for the contract to continue or be enforceable. If the condition subsequent is not met, the contract may be terminated or modified as specified in the contract.
A condition subsequent refers to a condition that, if it occurs after the formation of a contract, will terminate or modify the parties’ obligations under the contract.
While a condition precedent is a condition that must be fulfilled before a party’s obligations under a contract arise, a condition subsequent is a condition that, if fulfilled, will terminate or modify the existing obligations.
Yes, a condition subsequent can be implied in a contract if the language used in the contract suggests that the parties intended for certain events or circumstances to terminate or modify their obligations.
If a condition subsequent is not fulfilled, the parties’ obligations under the contract will continue as originally agreed upon, and the condition will not have any effect on the contract.
Yes, a party can waive a condition subsequent by expressly or impliedly indicating that they will not rely on the occurrence of the condition to terminate or modify their obligations under the contract.
Yes, a condition subsequent can be challenged in court if one party believes that the condition has been fulfilled or that it should not have any effect on the contract. The court will then interpret the contract language and determine the validity of the condition.
If a condition subsequent becomes impossible to fulfil due to unforeseen circumstances or events beyond the control of the parties, the contract will continue as originally agreed upon, and the condition will not have any effect.
Yes, a condition subsequent can be revoked by the party who initially imposed it, as long as the other party agrees to the revocation. This revocation will remove the condition from the contract and reinstate the original obligations.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 7th April, 2024.
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