Definition - What does Condition Subsequent mean?
A condition subsequent is an event or condition that frees a party from honoring a responsibility in a contract, changes the conditions or terms in a contract, or terminates the contract altogether.
Insuranceopedia explains Condition Subsequent
A supplier for a company may stop sending supplies once that company ends its business operations. A prenuptial agreement might terminate the ownership of a property or a future interest in it once the couple is divorced. A performer may not give a performance unless they are given 50% of the talent fee by the performance date. These are examples of conditions subsequent.
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