In terms of contract discharge, distinguish between a contract that is subject to a condition precedent and one that is subject to a condition subsequent
What will be an ideal response?
A condition precedent is a particular event that must take place in order to give rise to a duty of performance. If the event does not take place, the contract may be discharged. For example, when Smith enters into a contract with Jones to sell a piece of real estate, a clause in the agreement requires that title must be approved by Jones's attorney before closing and execution of the contract for sale. If Jones's attorney does not give this approval before the closing, then Jones is discharged from the contract. In contrast to a condition precedent, a condition subsequent is a particular future event that, when it follows the execution of a contract, terminates the contract. For example, a homeowner's insurance contract may discharge the insurer from responsibility for coverage in the event of an "act of war" (the condition subsequent).
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