What is a condition subsequent?

A condition subsequent is a clause or provision in a contract that allows one or both parties to terminate the contract in certain scenarios. In California, a condition subsequent is generally considered valid when spelled out in a written contract and both parties are in agreement. A condition subsequent can be an explicit part of the contract, or it can be implied through certain circumstances outlined in the contract. For example, if one party agrees to purchase a car from another, the buyer may specify in the contract that they will make the purchase only if they pass a test drive. If the test drive is unsuccessful, the contract is terminated and both parties are released from any obligation to the deal. In some cases, a condition subsequent may be in effect before the contract is ever signed. For instance, if one party agrees to invest in a business venture but only on the condition that the venture is successful, the investor can terminate the contract if the venture is unsuccessful. Overall, a condition subsequent is a common part of many contracts and is an essential element of contract law in California. It allows for a contract to be dissolved or amended in certain instances, giving both parties clear and reasonable expectations of the outcomes of their agreements.

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What is a condition subsequent?

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