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Contracts • Excuse of Non-Performance
K#134
Legal Definition
A condition subsequent is a condition that occurs after the start of performance and excuses performance.
Plain English Explanation
A condition precedent is a condition that must precede (or "happen before") the contract forms. It is the trigger that causes the contract to form and become binding.
Contrast this to a condition subsequent, which is a condition that happens after the contract forms. It is a trigger that, when it occurs, will change the terms of the contract (or possibly even kill the contract).
Contrast this to a condition subsequent, which is a condition that happens after the contract forms. It is a trigger that, when it occurs, will change the terms of the contract (or possibly even kill the contract).
Hypothetical
Hypo 1: Bob tells Sam, "If my wife agrees, I will purchase 100 tacos from your taco cart." Sam says, "Deal." Result: Bob's wife agreeing to the deal is a condition precedent because in order for a contract to form, Bob's wife must agree. No agreement = no satisfaction of the condition = no contract formation.
Hypo 2: Bob tells Sam, "Due to the pandemic, I'd like to purchase enough tacos to fill my freezer, so I will buy 10 tacos from you every day until my freezer is full." Sam says, "Deal." Result: Here, a contract has been formed. Bob has agreed to buy 10 tacos from Sam every day, and Sam has agreed to provide 10 tacos to Bob every day. However, this contract is subject to a condition subsequent, which is "until my freezer is full." In other words, Bob is obligated to keep buying 10 tacos every day until his freezer is full. Once his freezer is full, the contract terminates.
Hypo 2: Bob tells Sam, "Due to the pandemic, I'd like to purchase enough tacos to fill my freezer, so I will buy 10 tacos from you every day until my freezer is full." Sam says, "Deal." Result: Here, a contract has been formed. Bob has agreed to buy 10 tacos from Sam every day, and Sam has agreed to provide 10 tacos to Bob every day. However, this contract is subject to a condition subsequent, which is "until my freezer is full." In other words, Bob is obligated to keep buying 10 tacos every day until his freezer is full. Once his freezer is full, the contract terminates.
Visual Aids
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