Which statement accurately describes a condition subsequent?

A condition subsequent is a contractual stipulation that, if it occurs, can release one party from their obligations under the contract. This type of condition essentially provides a specific event or circumstance that, when triggered, ends the responsibilities of one party in the agreement.

For example, in a lease agreement, a condition subsequent might state that if a tenant doesn't pay rent for a certain period, the landlord can terminate the lease. This allows for a defined scenario where the normal obligations of a party can be waived, reflecting the impact that certain unforeseen events can have on contractual relationships.

The other options do not accurately reflect the nature of a condition subsequent. Preliminary requirements for a contract relate more to conditions precedent, while the initial parts of contracting are about the formation of agreements rather than conditions that modify obligations. Securing rights immediately upon signing also pertains to the effectiveness of the contract itself rather than subsequent conditions that might change that dynamic after the fact.