Condition Subsequent
Definition:
A condition subsequent is a contractual or legal event that, if it occurs after a duty or right has arisen, can terminate or modify that existing obligation. Unlike a condition precedent—which must occur before a duty begins—a condition subsequent ends an existing duty or interest when the specified event happens. It is used to limit or end contractual obligations based on future circumstances.
Condition Subsequent Information
Conditions subsequent are commonly found in contracts, property deeds, insurance policies, and employment agreements. For example, a deed may state that ownership reverts to the original owner if the property is not used for a specified purpose, or an insurance policy may terminate coverage if premiums are not paid. These conditions help parties manage risk and clarify when rights or obligations end. The occurrence of a condition subsequent typically releases one or both parties from further performance under the contract.
Florida Legal Definition
Under Florida law, a condition subsequent is recognized as an event that terminates or alters an existing contractual duty or legal right once it occurs. Florida courts interpret conditions subsequent strictly because they can result in the forfeiture of rights or property. Such conditions must be clearly expressed in the contract or deed to be enforceable. In real estate, Florida courts often analyze whether the event truly qualifies as a condition subsequent or simply a covenant affecting future performance.
How It’s Used in Practice
In practice, conditions subsequent appear in real estate conveyances, contracts, and insurance agreements. For example, a property deed might include a clause stating that ownership reverts to the grantor if the land ceases to be used for a public purpose. In contracts, a condition subsequent might terminate an employment agreement if certain post-hiring conditions are not met. Attorneys carefully draft and review these provisions to ensure compliance with Florida law and to prevent unintended loss of rights or property.
Key Takeaways
- A condition subsequent is an event that terminates or modifies an existing contractual obligation or legal right.
- It differs from a condition precedent, which must occur before a duty arises.
- Commonly used in real estate, insurance, and employment contracts to manage future risks.
- Florida law enforces conditions subsequent only when clearly stated and not contrary to public policy.
- Proper drafting ensures fairness and prevents unintended forfeiture of rights or property.
Disclaimer: The information and opinions provided are for general educational, informational or entertainment purposes only and should not be construed as legal advice or a substitute for consultation with a qualified attorney. Any information that you read does not create an attorney–client relationship with Barnes Walker, Goethe, Perron & Shea, PLLC, or any of its attorneys. Because laws, regulations, and court interpretations may change over time, the definitions and explanations provided here may not reflect the most current legal standards. The application of law varies depending on your particular facts and jurisdiction. For advice regarding your specific situation, please contact one of our Florida attorneys for personalized guidance.
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