Conditions Precedent and Subsequent - Explained
What is a Condition Precedent and Condition Subsequent to Contract?
Written by J. Mance Gordon
Updated at April 19th, 2024
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What are conditions upon the duty to perform a contract?
Conditions are facts or situations that must materialize (or fail to materialize) for either or both parties to have the duty to perform a contract.
What is a Condition Precedent?
A condition precedent is where something must take place or a situation must arise prior to or before a party has a duty to perform.
- Example: Eric agrees to sell Fran one of his playoff seat tickets if the Atlanta Braves make it to the playoffs. The obligation to sell Fran a ticket only arises upon the occurrence of a specific event.
What is a Condition Subsequent?
A condition subsequent excuses contractual performance if some future event takes place or situation arises.
- Example: Frank agrees to cut Gina's grass today if it does not rain. If it rains, Frank is relieved from the obligation to cut the grass. Likewise, Gina is relieved from her duty to pay Frank.
A condition may be expressed between the parties or implied from the nature of the agreement. That is, the parties affirmatively discuss or include the conditions in the agreement or the language or nature of the contract may imply certain conditions on performance. The contract may also contain conditions that must take place concurrently before either party has a duty to perform. This is often the case when the contract requires simultaneous performance. Most point-of-sale purchases involve an implied concurrent condition of performance.
- Example: I give the cashier money and she sells me the groceries. My giving her money is a condition necessary for her to sell me the groceries.
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