In: Accounting
A contract to purchase a car contains the following clause. if you are not completely satisfied with the car ,return it in good condition within 7 days and we will give you your money back. is this clause a condition precedent or a condition subsequent ? explain your answer
The above condition placed in the question was CONDITION SUBSEQUENT.
Explanation for my answer is as follows
1. Firstly we get a clarity about the term CONDITION SUBSEQUENT. It means a condition subsequent excuses the contractual performance if some future events takes place or situation arises
2. Here in the above mentioned question the return of the car with in 7 days having in good condition is not a compulsory situation
3. The return case will be come on to the picture when the customer was not satisfied with the car then the condition will be applied
4. Why it is not a precedent condition is precedent condition means that condition is before the contract and the parties has to perform those conditions while before completion of contract.
5. Here the return of car was the matter of after the purchase of car it means the contract is already done and both the parties discharged with there duties
6. If at all the customer was not satisfied with car and he wants to return car within 7 days and with good condition them the seller and buyer get attracts to the return condition if customer satisfied with car and has no idea to return the there is no use of condition
7. So by analysing all the points given above the condition exists only after the contract in some situations only
8. As we see the meaning of CONDITION SUBSEQUENT it also says that condition is exits after the contract in some situations only.
Hence the above given condition in the question is CONDITION SUBSEQUENT.
I hope, all the above given information is helpful to you and hope that you have cleared you doubts regarding the question.
Thank you.