Home » Legal Rights » Before or After: Condition Precedent or Condition Subsequent

A condition subsequent is where a contract will be subject to the satisfaction or fulfilment of conditions, despite the contract having been commenced. Conditions subsequent differ to conditions precedent, where the latter is where a condition or requirement must be first satisfied before the contract comes into effect (or the gift is handed over).

A condition subsequent can also be used in terms of a gift, whereby the gift will be given on the premise certain conditions will be fulfilled by the recipient. If the recipient does not fulfil such conditions, then the gift will revert to the donor (Zapletal v Wright [1957] Tas SR 211).

However, a recipient will take the gift free from a condition where the condition is illegal, void for public policy or, uncertain (Egerton v Brownlow).