A Condition Subsequent in a Contract

question 90

Multiple Choice

A condition subsequent in a contract

• A) implies that performance must be completely done according to contract specifications or the contract is breached.
• B) excuses performance upon the happening of some specified future event.
• C) does not allow impossibility of performance as an acceptable excuse for nonperformance.
• D) does not allow performance to be excused due to an unexpected event in the future.
• E) involves implied concurrent conditions of performance.

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Definitions:

Withdrawal

The action of taking money out of an account, or the removal of assets from a business by the owner for personal use.

Equity Interest

Ownership interest in a company, represented by the equity or shares held by investors.

Mutual Agreement

A consensus reached by two or more parties where the terms of an engagement or deal are accepted by all involved.

Limited Life

Refers to the finite existence of certain assets, indicating they will only last for a specific period before ceasing to be useful.