Condition Precedent vs Condition Subsequent

Transcript:

Hello!

In common law, both condition precedent[1] and condition subsequent[2] describe events that affect contractual obligations—but they do so in opposite ways.

A condition precedent is an event that must occur[3] before a party’s duty to perform arises. It suspends the existence of an obligation until the condition is satisfied. If the condition never occurs, the obligation never matures. For example, in a real estate contract for the sale of land “subject to planning permission“[4], if the planning permission is not granted[5], the buyer is not obliged to purchase the land, and the seller is not obliged to sell it. The obtaining of planning permission is a condition precedent to the sale. Until that permission is granted, the buyer and seller are not bound[6] to proceed.

By contrast, a condition subsequent brings an existing obligation to an end if a specified event happens. The obligation is initially effective but is extinguished[7] upon the occurrence of the condition. For instance, a loan agreement might state that the loan is repayable immediately if the borrower becomes insolvent. The insolvency is a condition subsequent that terminates the borrower’s right to continue using the funds and triggers[8] the lender’s right to demand[9] epayment. Another example could be a lease agreement that terminates automatically if the tenant[10] breaches a specific covenant, such as not paying rent for a certain period.

These concepts also operate in property and succession law. For example, a gift may be made on condition that the beneficiary marries within five years (condition precedent), or that they forfeit a gift upon insolvency[11] (condition subsequent).

Thank you very much and see you next time for more Peter’s Pills to improve your Legal English!

Note

[1] condition precedent – condizione sospensiva

[2] condition subsequent – condizione risolutiva

[3] occur – verificarsi

[4] subject to planning permission – subordinato al rilascio del permesso di costruire

[5] granted – concesso

[6] bound – vincolati

[7] is extinguished – si estingue

[8] triggers – fa scattare

[9] demand – esigere

[10] tenant – conduttore

[11] forfeit a gift upon insolvency – prevede la decadenza dal beneficio in caso di insolvenza

See more about how a Judge’s decisions deals with condition precedent and condition subsequent here: “Contracts. Conditions Precedent and Subsequent“.

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Legal English – Sommario delle Lezioni

• Legal English – Peter’s Pills – Lesson 98 – Condition Precedent vs Condition Subsequent

• Legal English – Peter’s Pills – Lesson 97 – Board Observers

• Legal English – Peter’s Pills – Lesson 96 – Vested interest vs Contingent interest

• Legal English – Peter’s Pills – Lesson 95 – Collegiality

• Legal English – Peter’s Pills – Lesson 94 – OE = A – L

• Legal English – Peter’s Pills – Lesson 93 – False Friends – Part Two

• Legal English – Peter’s Pills – Lesson 92 – False Friends

• Legal English – Peter’s Pills – Lesson 91 – Fee Estimate Headings – Part 5 – Unregistered deeds and formalities

• Legal English – Peter’s Pills – Lesson 90 – Fee Estimate Headings – Part 4 – Other

• Legal English – Peter’s Pills – Lesson 89 – Fee Estimate Headings – Part 3 – Mortis Causa

• Legal English – Peter’s Pills – Lesson 88 – Fee Estimate Headings – Part 2 – Corporate

• Legal English – Peter’s Pills – Lesson 87 – Fee Estimate Headings – Part 1 – Real Estate Deeds

• Legal English – Peter’s Pills – Lesson 86 – Traded, listed and quoted

• Legal English – Peter’s Pills – Lesson 85 – Sole Traders and Partnerships

• Legal English – Peter’s Pills – Lesson 84 – General English vs Legal English 2

• Legal English – Peter’s Pills – Lesson 83 – General English vs Legal English 1

• Legal English – Peter’s Pills – Lesson 82 – Next of kin

• Legal English – Peter’s Pills – Lesson 81 – File, Register and Enrol

• Legal English – Peter’s Pills – Lesson 80 – Securities

• Legal English – Peter’s Pills – Lesson 79 – Legatee vs Devisee

• Legal English – Peter’s Pills – Lesson 78 – Adverse possession

• Legal English – Peter’s Pills – Lesson 77 – Probate

• Legal English – Peter’s Pills – Lesson 76 – File a deed vs Record a deed

• Legal English – Peter’s Pills – Lesson 75 – Allotting shares, Issuing shares and Placing shares

• Legal English – Peter’s Pills – Lesson 74 – Personal Representatives

• Legal English – Peter’s Pills – Lesson 73 – Essential Elements of a Contract

• Legal English – Peter’s Pills – Lesson 72 – Types of cases: Cornerstone and Milestone cases

• Legal English – Peter’s Pills – Lesson 71 – Types of cases: Landmark cases

• Legal English – Peter’s Pills – Lesson 70 – Specific performance

• Legal English – Peter’s Pills – Lesson 69 – Wills

• Legal English – Peter’s Pills – Lesson 68 – Notice

• Legal English – Peter’s Pills – Lesson 67 – Bonds vs Debentures

• Legal English – Peter’s Pills – Lesson 66 – Person Persons People

• Legal English – Peter’s Pills – Lesson 65 – Financial Reporting Words

• Legal English – Peter’s Pills – Lesson 64 – Representations and Warranties

• Legal English – Peter’s Pills – Lesson 63 – Machine translations

• Legal English – Peter’s Pills – Lesson 62 – Legal Timelines

• Legal English – Peter’s Pills – Lesson 61 – Liens

• Legal English – Peter’s Pills – Lesson 60 – Test your Legal English

• Legal English – Peter’s Pills – Lesson 59 – Appurtenent vs In gross

• Legal English – Peter’s Pills – Lesson 58 – Building societies and Banks

• Legal English – Peter’s Pills – Lesson 57 – Valid, void and voidable contracts

• Legal English – Peter’s Pills – Lesson 56 – Rescission

• Legal English – Peter’s Pills – Lesson 55 – Golden expressions

• Legal English – Peter’s Pills – Lesson 54 – Pre-emption right vs Right of first refusal

• Legal English – Peter’s Pills – Lesson 53 – What do we mean by “agent” of a company?

• Legal English – Peter’s Pills – Lesson 52 – Voting at a meeting

• Legal English – Peter’s Pills – Lesson 51 – Contracts vs Deeds

• Legal English – Peter’s Pills – Lesson 50 – Executive and Non-Executive Directors

• Legal English – Peter’s Pills – Lesson 49 – Transfer of shares vs transmission of shares

• Legal English – Peter’s Pills – Lesson 48 – They, them, their for singular nouns

• Legal English – Peter’s Pills – Lesson 47 – Jointly and severally

• Legal English – Peter’s Pills – Lesson 46 – Invoice words

• Legal English – Peter’s Pills – Lesson 45 – Quotation

• Legal English – Peter’s Pills – Lesson 44 – Gazumping and Gazundering

• Legal English – Peter’s Pills – Lesson 43 – English words that the English do not understand

• Legal English – Peter’s Pills – Lesson 42 – Easement vs Profit à prendre

• Legal English – Peter’s Pills – Lesson 41 – er, -or and -ee names

• Legal English – Peter’s Pills – Lesson 40 – The Objects Clause

• Legal English – Peter’s Pills – Lesson 39 – When is Latin hot, and when is it not?

• Legal English – Peter’s Pills – Lesson 38 – Default

• Legal English – Peter’s Pills – Lesson 37 – Company Agent

• Legal English – Peter’s Pills – Lesson 36 – Injunction (false freind)

• Legal English – Peter’s Pills – Lesson 35 – Mortgage

• Legal English – Peter’s Pills – Lesson 34 – Freehold, Leasehold and Commonhold estates

• Legal English – Peter’s Pills – Lesson 33 – Transferor, Transferee and Transmittee

• Legal English – Peter’s Pills – Lesson 32 – Tax evasion, tax mitigation and tax avoidance

• Legal English – Peter’s Pills – Lesson 31 – Numbers

• Legal English – Peter’s Pills – Lesson 30 – Ordinary resolutions vs special resolutions

• Legal English – Peter’s Pills – Lesson 29 – AGM vs EGM

• Legal English – Peter’s Pills – Lesson 28 – A going concern

• Legal English – Peter’s Pills – Lesson 27 – Collocations: Violate, breach, break, disobey and infringe

• Legal English – Peter’s Pills – Lesson 26 – Company meeting words

• Legal English – Peter’s Pills – Lesson 25 – Mortgagor vs Mortgagee

• Legal English – Peter’s Pills – Lesson 24 – Fixed charges vs Floating charges

• Legal English – Peter’s Pills – Lesson 23 – Doctrine

• Legal English – Peter’s Pills – Lesson 22 – Construe

• Legal English – Peter’s Pills – Lesson 21 – Sign vs Execute

• Legal English – Peter’s Pills – Lesson 20 – The closing statement

• Legal English – Peter’s Pills – Lesson 19 – Writing Business Emails

• Legal English – Peter’s Pills – Lesson 18 – Limited companies

• Legal English – Peter’s Pills – Lesson 17 – Annual Accounts

• Legal English – Peter’s Pills – Lesson 16 – Meetings

• Legal English – Peter’s Pills – Lesson 15 – Attorney-at-law vs Attorney-in-fact

• Legal English – Peter’s Pills – Lesson 14 – Here and there compounds

• Legal English – Peter’s Pills – Lesson 13 – Subject Matter

• Legal English – Peter’s Pills – Lesson 12 – The clear days rule

• Legal English – Peter’s Pills – Lesson 11 – Shareholder, Member or Holder of shares?

• Legal English: Peter’s Pills – Lesson 10 – Competition Law

• Legal English: Peter’s Pills – Lesson 9 – Lasting Power of Attorney

• Legal English: Peter’s Pills – Lesson 8 – Guardianship

• Legal English: Peter’s Pills – Lesson 7 – Damage vs Damages

• Legal English: Peter’s Pills – Lesson 6 – Legal Doublets

• Legal English: Peter’s Pills – Lesson 5 – Escrow

• Legal English: Peter’s Pills – Lesson 4 – Memorandum of Association vs Articles of Association

• Legal English: Peter’s Pills – Lesson 3 – Sign legibly

• Legal English: Peter’s Pills – Lesson 2 – Deed poll

• Legal English: Peter’s Pills – Lesson 1 – Party, counterparty and counterpart