Which element must occur to trigger performance obligations in some contracts?

• A. Condition precedent
• B. Consideration
• C. Offer and acceptance
• D. Breach

Answer: (A)

Performance obligations are often tied to a specific event that must happen before either party is obligated to act. A condition precedent is exactly that kind of event—the contract creates no duty to perform until that condition occurs. For example, a seller may only be required to deliver goods once the buyer secures financing, or a contractor may only begin work after receiving necessary permits. Without the condition precedent being satisfied, there is no obligation to perform.

Consideration is about the bargained-for exchange that forms a contract, not about when performance begins. Offer and acceptance establish the contract itself, not the triggering of duties. Breach refers to failing to perform once obligations exist, not to what starts those obligations.