A seller accepts an offer conditional on the seller purchasing another property by October 30. This is an example of what type of condition?

Question: A seller accepts an offer conditional on the seller purchasing another property by October 30. This is an example of what type of condition?

Answer options:

• A condition subsequent, which, if not met, will nullify an already binding contract. ✅ A condition precedent, which must be met before the contract becomes firmly binding.
• A collateral warranty, which is a minor term separate from the main contract.
• A subject waiver, allowing the seller to forgo a contractual obligation.

Correct answer: A condition precedent, which must be met before the contract becomes firmly binding.

Explanation: A condition precedent is a contractual term that must be satisfied or waived before the contract becomes fully binding on the parties. In this case, the seller's purchase of another property is a pre-condition to their primary sale becoming firm.