Which description best defines a condition precedent?

Which description best defines a condition precedent?

• A. A condition precedent requires performance to occur after a specified event.
• B. A condition precedent requires performance before the specified event occurs.
• C. A condition precedent has no effect on the timing of performance.
• D. A condition precedent creates a duty to perform only after the specified event occurs.

Answer: (D)

A condition precedent is something that must happen before a party’s duty to perform arises. In other words, the contract requires a specific event to occur first, and only then is performance due. If that event never happens, there’s no obligation to perform. For example, a contract to buy a car might state the buyer’s obligation to pay and take possession occurs only if the dealer secures financing. If financing falls through, there’s no duty to complete the purchase. This is why the best description is that the duty to perform is created only after the specified event occurs. The other options either imply performance is required regardless of the event, or suggest timing is irrelevant, which isn’t consistent with a condition precedent.

A condition precedent is something that must happen before a party’s duty to perform arises. In other words, the contract requires a specific event to occur first, and only then is performance due. If that event never happens, there’s no obligation to perform.

For example, a contract to buy a car might state the buyer’s obligation to pay and take possession occurs only if the dealer secures financing. If financing falls through, there’s no duty to complete the purchase.

This is why the best description is that the duty to perform is created only after the specified event occurs. The other options either imply performance is required regardless of the event, or suggest timing is irrelevant, which isn’t consistent with a condition precedent.