What is a condition? Give an example of each of the following: condition precedent, condition concurrent, and condition subsequent
A condition is an event whose happening or nonhappening affects a duty of performance under a contract.
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Condition precedent: If Masako is to buy Cary's land for $50,000 provided Masako can obtain financing in the amount of $40,000 at no more than 5% interest, obtaining the financing at no more than 5% interest is a condition precedent.
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Condition concurrent: If Justin has contracted to sell Liz a watch for $25, with delivery and payment to take place at the same time, the obligation to pay for the watch is a condition concurrent to the obligation to turn over the watch to Liz.
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Condition subsequent: Where goods are sold under terms of "sale or return," the buyer has the right to return the goods to the seller within a stated period, but is under an immediate duty to pay the price unless credit has been agreed upon. The duty to pay the price is terminated by a return of the goods, which operates as a condition subsequent.
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