# Conditions

A **condition** is an act or event (other than the lapse of time) that must occur before performance under a contract becomes due. Conditions determine when a party must perform.

| Type of Condition          | Description                                                                                        |
| -------------------------- | -------------------------------------------------------------------------------------------------- |
| **Condition precedent**    | A condition must occur before a party’s performance is required                                    |
| **Concurrent condition**   | Each party’s performance is dependent on the other party’s performance                             |
| **Subsequent condition**   | A condition follows the duty to perform that completely eliminates or discharges a duty to perform |
| **Constructive condition** | Equitable doctrine that serves as an implied-in-law condition to prevent injustice                 |

A **condition precedent** is an act or event that must occur before a duty of immediate performance of a promise arises. For example, an inspection of property is a condition precedent to the sale of a home.

A **concurrent condition** occurs when mutually dependent conditions must be performed at the same time by the parties. For example, delivery of goods and payment in a cash sale are concurrent conditions.

A **subsequent condition** is an event that discharges a duty of performance that becomes absolute. They are rare and tend to occur in the insurance industry. For example, an insurance company may require notice within thirty days of a claim. The insurance company does not have a duty to pay until the insured gives notice. Notice is the subsequent condition that triggers the insurance company’s performance.

A **constructive condition** is a condition contained in an essential contractual term that, though omitted by the parties from their agreement, a court has supplied as being reasonable in the circumstances. It is an equitable doctrine that serves to imply conditions to prevent injustice.


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