Understanding Conditions Precedent and Conditions Subsequent in Contracts

The video tutorial explains the concept of conditions in contracts, which are terms that must be met for obligations to arise or be excused. It distinguishes between condition precedent, which must occur before obligations are binding, and condition subsequent, which can relieve obligations if they occur. The tutorial also covers expressed and implied conditions, providing examples and discussing their role in contract performance.

What is a condition precedent in a contract?

• An event that must occur after an obligation arises

• An event that cancels an existing obligation

• An event that must occur before an obligation arises

• An event that has no impact on the contract

Which of the following is an example of a condition subsequent?

• Performing services before receiving payment

• Being excused from mowing the lawn if a team wins a championship

• Paying for goods before receiving them

• Selling a coat if a team wins a championship

How is an express condition defined?

• A condition that is not written but understood

• A condition that is explicitly stated in the contract

• A condition that is irrelevant to the contract

• A condition that is assumed by both parties

What is an implied condition in a contract?

• A condition that is assumed to exist based on the nature of the agreement

• A condition that is always written in the contract

• A condition that is explicitly stated

• A condition that is irrelevant to the contract

Under common law, when is payment typically made for services?

• Payment is not required for services

• Before the services are performed

• After the services are performed

• At the same time as the services are performed