Asked by Danielle Efrat on May 26, 2024

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Which of the following is a contract with a condition subsequent?

A) Rhonda enters into a contract to buy a new car conditional upon her getting a loan from her bank.
B) Roger bought a smartphone but he may return the phone within ten days and get all of his money back.
C) Susanne and Ethan sign a contract to buy a new home, on the condition that their current home sale is finalized in the next 30 days.
D) All of these are examples of condition subsequent.

Condition Subsequent

A condition subsequent is a condition in a contract that, when met, terminates an existing obligation under the contract, as opposed to initiating it.

  • Identify the importance of conditions precedent and subsequent in delineating the obligations among parties to an agreement.
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KV
Khushbu VhoraMay 28, 2024
Final Answer :
B
Explanation :
A condition subsequent is a condition that, when it occurs, can end a party's contractual obligation. Option B describes a situation where the continuation of the contract (keeping the smartphone) is dependent on a condition not occurring within a specific time frame (returning the phone within ten days). If the condition occurs (the phone is returned), the contractual obligation ends, which fits the definition of a condition subsequent. Options A and C describe conditions precedent, where the contract's obligations only begin if a condition is met.