Differentiate the immediate practical effect on performance obligations when a 'condition precedent' fails to occur versus when a 'condition subsequent' is triggered in an active agreement.

When a condition precedent fails to occur, the immediate practical effect on performance obligations is that the specific obligation dependent upon that condition never becomes active or enforceable. A condition precedent is an event or action that must take place before a contractual duty is due. If this prerequisite event does not happen, the party whose obligation is made conditional by it is not required to perform, as the duty itself has not yet matured. For example, if a contract to purchase land is contingent upon the buyer obtaining a specific zoning variance, and the buyer fails to secure that varia....