Condition Subsequent

From the Latin subsequent (Latin: "following after").

In one sentence

An event that, if it occurs, ends or excuses performance under a contract.

Plain English

A condition subsequent is something that might happen after a contract is made, and if it does happen, it can let one or both parties off the hook from their obligations. Think of it as a built-in exit clause. For example, a contract might say "you must pay me unless it rains on Tuesday." If it rains on Tuesday, the condition subsequent occurs and the obligation disappears. This is different from a condition precedent, which must happen before an obligation kicks in.

Ad slot

Example

You agree to buy a car from a dealer, but the contract says the deal is void if the car fails inspection. If the car fails inspection, that condition subsequent is triggered, and neither party has to go through with the sale.

Used in a sentence

“The employment contract included a condition subsequent that would terminate the agreement if the employee was convicted of a felony.”

Related terms

Express Condition

A requirement clearly stated in a contract that must happen for obligations to arise.

Contract

A legally binding agreement between two or more parties to do or not do something.

Performance

The act of doing what a contract requires, such as delivering goods or paying money.

Modification

A change to a contract made by the parties after it's already in effect.

Rescission

Unwinding a contract entirely, returning both parties to their positions before the deal.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

Offer

A proposal to enter into a binding agreement on specific terms.

Consideration

Something of value exchanged by each party to make a contract binding.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.