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Alik [6]
3 years ago
12

Assume that Jack, Hal, and Sophia enter into a valid contract for the sale of the restaurant and for a covenant not to compete.

The contract calls for Hal and Sophia to pay $300,000 now and 10% of the gross sales of the restaurant and frozen food to Jack for the next ten years. There is a clause in the contract that states if the revenue dips below $50,000 per year, that Jack would then get back the rights to sell the frozen food himself. This clause is:
A. a concurrent condition.
B. a condition subsequent.
C. a condition precedent.
Business
1 answer:
Iteru [2.4K]3 years ago
4 0

Answer: Option (B)

Explanation:

Condition subsequent clause is referred to as an exit clause from the existing contract. This agreement in between the parties tends to include languages that loosens or frees one of individuals from the agreement or the deal. This tends to mostly occur when the conditional outcome or result takes place. The conditional subsequent relieves an individual or a party from all the obligations.

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