What type of conditions exist when each party's performance is conditioned on the other's simultaneous performance?

Concurrent conditions occur when the obligations of each party in a contract are dependent upon the simultaneous performance of the other party's obligations. Essentially, this means that the parties are required to perform their duties at the same time to fulfill the contract. For example, in a real estate transaction, the seller might be required to transfer the property to the buyer at the same time that the buyer pays the purchase price. Neither party is obliged to perform until the other fulfills their part of the agreement, creating a reciprocal obligation.

In contrast, condition precedent refers to a situation where one party's obligation to perform depends on a specific event or condition occurring before performance is required. Condition subsequent involves the cessation of an obligation when a specific condition occurs after a contract has been formed. Discharge by rescission refers to the termination of a contract before it is fulfilled, often due to an agreement between parties to return to their pre-contractual positions.

Understanding these distinctions clarifies that concurrent conditions specifically relate to mutual, simultaneous obligations, making it the accurate choice.