What is a condition subsequent?

A condition subsequent is a type of clause in a contract which, if breached, terminates the contract. In North Carolina, a condition subsequent is a contract provision that requires a certain event to occur in order for the contract to remain in effect. For example, a contract may include a condition subsequent that would terminate the contract if one of the parties fails to make payments on time. In a legal context, a condition subsequent must be distinguished from other provisions in a contract, such as conditions precedent. A condition precedent is a clause in a contract which must be fulfilled before the contract is legally effective. In contrast, a condition subsequent must be fulfilled after the contract is legally effective. In North Carolina, conditions subsequent are typically written into contracts to protect the parties involved. If one of the parties breaches the condition subsequent, then the contract becomes void and the other party is no longer held to any of the obligations of the contract. This ensures that each party will be held accountable for their end of the contract, and that any losses or damages that occur as a result of a breach in the conditions subsequent will be addressed in accordance with the law.

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