Sherry and Gretchen orally agree that Sherry will begin paying Gretchen $500 per month,but if ABC Corp.dissolves,Sherry will no longer have to pay Gretchen.ABC Corp.dissolves and Sherry promptly stops making any future payments to Gretchen.Which of the following statements is true?
A)If Gretchen sues Sherry,Sherry will bear the burden of proving the occurrence of the condition.
B)This is an example of a condition precedent.
C)Gretchen cannot sue Sherry because the agreement was not in writing.
D)Gretchen's only course of redress is to bring an action against ABC Corp.

Question

Quizplus · Accepted Answer

This is an example of a condition subsequent.The major significance of the distinction between conditions precedent and conditions subsequent is that the plaintiff bears the burden of proving the occurrence of a condition precedent,while the defendant bears the burden of proving the occurrence of a condition subsequent.

Sherry and Gretchen Orally Agree That Sherry Will Begin Paying