LawMeaning

Conditions Subsequent

In one sentence

An event that, if it happens, ends a party's obligation or allows them to cancel the contract.

Plain English

A condition subsequent is the opposite of a condition precedent. It's an event that, if it occurs, lets a party off the hook or gives them the right to cancel. The party's duty exists first, but then if the condition happens, the duty goes away. For example, a life insurance policy might say the insurer's obligation to pay ends if the policyholder commits suicide within a certain period—suicide is a condition subsequent that terminates the insurer's duty. Conditions subsequent are less common than conditions precedent in everyday contracts.

Ad slot

Example

A rental agreement states that the landlord can evict the tenant if the tenant is convicted of a felony. The felony conviction is a condition subsequent that gives the landlord the right to end the tenancy.

Used in a sentence

“The employment contract included a condition subsequent allowing the company to terminate the employee if she lost her professional license.”

Related terms

Conditions Precedent
An event that must happen before a party's obligation under a contract kicks in.
Materiality
Whether a fact or breach is important enough to affect the contract's core purpose or value.
Discharge
The release of a party from their contractual obligations.
Excuse for Nonperformance
A legal reason why someone doesn't have to perform their contract obligations.
Implied Covenant of Good Faith and Fair Dealing
An unwritten promise in every contract that parties will act honestly and fairly toward each other.
Offer
A proposal to enter into a binding agreement on specific terms.
Acceptance
Agreeing to the exact terms of an offer, creating a binding contract.
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.