A condition subsequent is a philosophical and legal term referring to a defined event which terminates a proposition or a

contract A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to ...

ual 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 A barber is a person whose occupation is mainly to cut, dress, groom, style and shave men's and boys' hair or beards. A barber's place of work is known as a "barbershop" or a "barber's". Barbershops are also places of social interaction and publi ...

to shave his beard, the barber then failing to do so would terminate the man's obligation to pay. An

exit clause An escape clause is any clause, term, or condition in a contract that allows a party to that contract to avoid having to perform the contract. If an agreement was drawn up for the sale of a house, for example, the purchaser could include some ...

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 is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to ...

, a

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 ''Taylor v Caldwell'' is a landmark English contract law case, with an opinion delivered by Mr Justice Blackburn which established the doctrine of common law impossibility. Facts Caldwell & Bishop owned Surrey Gardens & Music Hall, and agreed ...

'' 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 Default may refer to: Law * Default (law), the failure to do something required by law ** Default (finance), failure to satisfy the terms of a loan obligation or failure to pay back a loan ** Default judgment, a binding judgment in favor of ei ...

. Conditions subsequent can be explicitly stated in the language of a contract, or implied by the nature of an agreement. Implicit conditions subsequent often apply in the case of

retail Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and th ...

transactions, like

point of sale The point of sale (POS) or point of purchase (POP) is the time and place at which a retail transaction is completed. At the point of sale, the merchant calculates the amount owed by the customer, indicates that amount, may prepare an invoice f ...

purchases. In property law, a condition subsequent is an event which terminates a party's interest in a property. When land rights are subject to a condition subsequent, this creates a defeasible fee called a fee simple subject to condition subsequent. In such a fee, the future interest is called a "right of reentry" or " right of entry." There, the fee simple subject to condition subsequent does not end automatically upon the happening of the condition, but if the specified future event occurs, the grantor has a right to retake his property (as opposed to it reverting to him automatically). Again, the right of entry is not automatic, but rather must be exercised to terminate the fee simple subject to condition subsequent. To exercise right of entry, the holder must take substantial steps to recover possession and

title A title is one or more words used before or after a person's name, in certain contexts. It may signify either generation, an official position, or a professional or academic qualification. In some languages, titles may be inserted between the f ...

, for example, by filing a lawsuit. One of the languages used to create a fee simple subject to condition subsequent and a right of entry is "to A, but if A sells alcohol on the land, then grantor has the right of reentry." Common uses include language such as "may", "but if", "however", or "provided that..." Some examples of conditions subsequent often requested by parties to a contract include bankruptcy,

divorce Divorce (also known as dissolution of marriage) is the process of terminating a marriage or marital union. Divorce usually entails the canceling or reorganizing of the legal duties and responsibilities of marriage, thus dissolving the ...

, or relocation to a different area; a contract with such conditions will free that party from obligation to carry out its terms if some unforeseen event causes the situation to change dramatically. Generally, the defendant has the burden of proof to demonstrate that conditions subsequent were met.

Compared to condition precedent

In comparison, a condition subsequent brings a duty to an end, whereas a condition precedent initiates a duty.

Compared to condition precedent

See also

References

Further reading