A condition that activates a term is called a condition subsequent and the one that suspends a term is called a condition precedent.

The statement is false because it reverses the definitions of condition precedent and condition subsequent. A condition precedent is an event or state of affairs that is required before something else will occur. In contract law, it is an event that must take place before a party has a duty to perform. It activates the obligation. Conversely, a condition subsequent is an event or state of affairs that brings an end to something else. In a contract, it is a condition that, if it occurs, will terminate an existing duty of performance. It suspends or terminates the obligation.

A. True: This is incorrect as the statement fundamentally misrepresents the legal definitions of condition precedent and condition subsequent by swapping their respective functions.

1. National Contract Management Association. (2019). Contract Management Body of Knowledge (CMBOK) (6th ed.). Section 2.1.5.1, "Types of Conditions." This section defines a condition precedent as an event that must occur before performance is due, and a condition subsequent as an event that terminates a duty that has already arisen.

2. Cornell Law School Legal Information Institute (LII). (n.d.). Condition Precedent. Wex Legal Dictionary/Encyclopedia. Retrieved from https://www.law.cornell.edu/wex/conditionprecedent. This source defines a condition precedent as "a condition or an event that must occur before a right, claim, duty, or interest arises."

3. Cornell Law School Legal Information Institute (LII). (n.d.). Condition Subsequent. Wex Legal Dictionary/Encyclopedia. Retrieved from https://www.law.cornell.edu/wex/conditionsubsequent. This source defines a condition subsequent as an event that "operates to discharge a duty of performance that has arisen."