What is an example of a condition subsequent?

The concept of a condition subsequent refers to a specific event or circumstance that, if it occurs, can terminate an existing obligation or agreement. In this context, selecting weather impacting a property condition as an example of a condition subsequent aligns with this definition. Weather can significantly affect the physical state of a property and, for instance, could lead to the cancellation of a transaction if adverse conditions make the property unmarketable or unsuitable for the buyer. This impact can be pivotal after an agreement has been initially reached, thereby showing how a condition subsequent operates.

The other options involve prerequisites or obligations that must be met prior to finalizing a transaction rather than conditions that can terminate an existing obligation, which illustrates the distinction. For example, securing financing or legal obligations must typically be satisfied before going forward with a sale, while negotiating terms is part of the initial agreement process rather than a condition that would impact the agreement after it is made.