REG Contracts · Updated November 2026
Condition Precedent vs Condition Subsequent
Timing is the whole distinction.
Condition precedent
A condition precedent must occur before a contractual duty becomes due.
Condition subsequent
A condition subsequent can terminate or discharge a duty that already exists.
Exam strategy
Ask whether the event turns the duty on or turns an existing duty off.
Common trap
Do not confuse conditions with promises; breach and failure of condition can create different consequences.
The takeaway
A condition precedent activates a duty; a condition subsequent can terminate one.
Related Summit resources
FAQ
What is the core idea?
A condition precedent activates a duty; a condition subsequent can terminate one.
What should you identify first?
Timing is the whole distinction.
Why does this matter on the CPA Exam?
Separate events that must occur before a duty arises from events that discharge an existing duty.