Question

6) Define conditions precedent, concurrent and subsequent and give examples.

Answer 1

condition precedent:

A condition precedent is a legal term describing a condition or event that must come to pass before a specific contract is considered in effect or any obligations are expected of either party.

There may also be condition precedents in the ongoing life of a contract, which simply state that if condition X occurs, event Y will then occur. Condition X is the condition precedent.

Example:

In real estate, a mortgage contract will have a condition precedent that an inspection to assess the condition and value of the property must occur. That assessment must be agreed to by both the buyer and the lender before the mortgage contract takes effect.

Condition precedents are also quite common in wills and trusts, where the transfer of money or property only occurs after certain stipulations are met, such as an heir being married or reaching a certain age.

Conditions concurrent:

The second form of contract condition is one that must occur at the same time as some other act or event. This is known as a condition concurrent. A condition concurrent is something that must occur simultaneously with another condition. Each party's obligation acts as a condition precedent for the other.

When there is a condition concurrent, the parties obligations are mutually dependent on each other. neither party has an obligation until the other party performs his or her obligations.

conditions subsequent :

A condition subsequent is an event or state of affairs that brings an end to something else. A condition subsequent is often used in a legal context as a marker bringing an end to one's legal rights or duties. A condition subsequent may be either an event or a state of affairs that must either (1) occur or (2) fail to continue to occur.

Examples:

A condition subsequent may be either an event or a state of affairs that must either (1) occur or (2) fail to continue to occur.

An example of the first, a condition that must occur to bring an end to something else:

• "When I run out of fuel, the fire will die down."

An example of the second, a condition that must fail to occur to bring an end to something else:

• "So long as I have fuel, the fire will continue."

In both cases, running out of fuel is a condition subsequent to the continuance of the fire.