What legal concept limits a city's obligations under a contract upon giving notice?

The concept that limits a city's obligations under a contract upon giving notice is known as "condition subsequent." This legal term refers to an event or condition that, when it occurs, will terminate or modify a party's obligations under a contract. In this case, if a city provides notice of a specific event or situation that fulfills the condition subsequent, its duty to perform under the terms of the contract could be relieved or adjusted based on the circumstances outlined in the agreement.

For instance, if a contract states that the city must perform certain services unless it gives notice of funding limitations, then once that notice is given, the city is no longer bound by its previous obligation. This concept allows for flexibility in contracts where certain unforeseen events can affect performance, thus providing a practical mechanism for managing contractual obligations in the face of changing circumstances.