Which term describes an event that, if it occurs, discharges a duty of performance in a contract?

Which term describes an event that, if it occurs, discharges a duty of performance in a contract?

• A. Condition concurrent
• B. Tender
• C. Anticipatory breach
• D. Condition subsequent

Answer: (D)

A condition subsequent is an event that, after the contract is formed, terminates the duty to perform if it occurs. When the specified event happens, the contract ends and performance is no longer due. This fits the question because it describes how an event occurring can discharge the obligation to perform. For example, a contract might state that the duty to perform ends if a required regulatory approval is denied. If that denial occurs, the obligation to proceed is discharged. This is different from a condition concurrent (where performance duties are to be fulfilled at the same time), or tender (an offer to perform), or anticipatory breach (one party indicating they won’t perform before performance is due, which is a breach rather than simply a conditioning event).

A condition subsequent is an event that, after the contract is formed, terminates the duty to perform if it occurs. When the specified event happens, the contract ends and performance is no longer due. This fits the question because it describes how an event occurring can discharge the obligation to perform.

For example, a contract might state that the duty to perform ends if a required regulatory approval is denied. If that denial occurs, the obligation to proceed is discharged. This is different from a condition concurrent (where performance duties are to be fulfilled at the same time), or tender (an offer to perform), or anticipatory breach (one party indicating they won’t perform before performance is due, which is a breach rather than simply a conditioning event).