Condition subsequent

Article summary

In philosophical and legal contexts, a condition subsequent is a defined event which terminates a proposition or a contractual obligation. In contrast to a condition precedent, a condition subsequent brings the event (or obligation) to an end, rather than being necessary for to the event or obligation to occur. In law, a condition subsequent is an event, or state of affairs, whose occurrence is automatically construed to terminate the obligation of one party to the other. One example is that, if a man agreed to pay a barber to shave his beard, the barber then failing to do so would terminate the man's obligation to pay. An exit clause is a form of condition subsequent that can serve as a form of insurance for the party to whom it applies. In contract law, a contract may be frustrated on the occurrence of a condition subsequent: in a contract to provide a music hall for a musical performance, the burning down of the music hall may frustrate the contract and automatically bring it to an end. Taylor v Caldwell 3 B. & S. 826, 122 Eng. Rep. 309 (1863) In a loan agreement, a condition subsequent is one which the borrower is required to satisfy within a set time period following their acquisition of the funds. Failure to do so typically triggers a default. Conditions subsequent can be explicitly stated in the language of a contract, or implied by the nature of an agreement.…

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