Which clause is indicated by phrases such as "subject to" and "on the condition that"?

The phrases "subject to" and "on the condition that" are indicative of a contingency clause. A contingency clause is used in real estate contracts to outline specific conditions or events that must occur for the contract to become binding. This type of clause protects the interests of the parties involved by allowing them to set conditions that need to be satisfied before moving forward with the agreement. For instance, a buyer may include a contingency that the purchase is subject to obtaining financing or the successful completion of a home inspection.

In contrast, a time is of the essence clause relates to deadlines within the contract, ensuring that parties perform their obligations promptly. An appendix typically serves as supplementary information that is attached to the main document, and an addendum refers to additional terms or changes made to the original agreement. Unlike these, a contingency clause specifically addresses the conditions that must be met, making it the correct answer in this context.