Introductory Business Law CLEP Prep Practice Exam

Which of the following best describes a condition precedent?

1. An event that happened after the fact

2. An event whose occurrence or performance can be excused

3. An event that happened before the obligation became due

4. An event that must occur before a contract can be enforced

The correct answer is: An event that must occur before a contract can be enforced

A condition precedent is an event that must occur before a contract can be enforced. This means that it is a necessary requirement that must be fulfilled before the parties involved are obligated to carry out the terms of the contract. Option A is incorrect because a condition precedent is something that must happen before, not after, the fact. Option B is incorrect because a condition precedent cannot be excused; it is a necessary part of the contract. Option C is incorrect because it states that the event happened before the obligation became due, but a condition precedent is something that needs to happen before the contract is enforced, not before the obligation is due. Therefore, option D is the best description of a condition precedent.