What term describes an obligation that arises only after the occurrence of a suspensive condition?

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Study for the Supernova Regulatory Framework for Business Transactions Test. Use flashcards and multiple choice questions. Each question has hints and explanations. Get prepared for your exam!

Multiple Choice

What term describes an obligation that arises only after the occurrence of a suspensive condition?

Explanation:
Think about how suspensive conditions work: the obligation doesn’t come into existence until the triggering event happens. That moment marks a condition precedent—the obligation arises only after the suspensive condition occurs. The event itself is the suspensive condition, but the label for the obligation that appears once it occurs is condition precedent. A condition subsequent would affect the obligation after it already exists, and condition antecedent isn’t the standard term used here.

Think about how suspensive conditions work: the obligation doesn’t come into existence until the triggering event happens. That moment marks a condition precedent—the obligation arises only after the suspensive condition occurs. The event itself is the suspensive condition, but the label for the obligation that appears once it occurs is condition precedent. A condition subsequent would affect the obligation after it already exists, and condition antecedent isn’t the standard term used here.

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