Which term describes an event that discharges a duty of performance when it occurs?

• A. Condition subsequent
• B. Anticipatory breach
• C. Repudiation
• D. Tender

Answer: (A)

Condition subsequent describes an event whose occurrence ends a party's duty to perform under a contract. When the specified event happens, performance is excused and the obligations terminate automatically. For example, a contract might say that if a certain regulatory approval is not obtained, the contract is void and neither side must perform. Anticipatory breach involves one party signaling they won’t perform before performance is due (a breach), not an event that automatically discharges the duty when it occurs. Repudiation is a form of anticipatory breach. Tender is simply an offer to perform and does not by itself terminate the duty unless it is accepted or otherwise discharged by the contract.