Home -> Law Blog Directory -> Local Law Blogs Blogs -> New Jersey Law Blog
(866) 635-2689 for Personal Injury or (866) 635-9402 for Criminal Defense
Find a Local Lawyer
Divorce (866) 635-6190
Personal Injury (866) 635-2689
Criminal Defense (866) 635-9402
Local Law Blogs
: New Jersey Law BlogContracts - Construction: Validity of Paid When Paid Provision
In the matter of Brolley Electrical v. Ernest Bock and Sons, Inc., the Court reviewed the validity and enforceability of a 'paid when paid' provision within a construction contract. The contract provided that payment by the owner to the general contractor being a condition precedent prior to the general contractor is obligated to pay the subcontractor.
The contract further provided that should the general contractor not receive payment from the owner that the general contractor would not be obligated to pay the subcontractor for the work performed. In validating the enforceability of the 'paid when paid' provision, the Court explained that where the condition precedent to payment was clear and unambiguous, there is no room for interpretation and the Court must strictly construe the terms of the contract .
The Court distinguished this decision from other opinions by stating that the condition precedent language within the present 'paid when paid' clause rendered the clause wholly enforceable in nature and did not require payment until corresponding payment is received by the general contractor. For these reasons, the Court ruled that the 'paid when paid' clause and the conditioned precedent language was enforceable, and therefore, no payment was due to the subcontractor until and unless payment is received by the general contractor from the project owner.
Full post as published by New Jersey Law Blog on November 18, 2009 (boomark / email).
Pre-paid Leagal Services
What are Prepaid Legal Benefit Plans
Legal Forms
Business and Commercial Legal Forms
New York Building Codes
Building and constructions laws in New York
Construction Site Accidents
Lawsuits related to accidents
Ladder Accident Injury Claims
Were you or a loved one injured in a ladder accident?
Department of Education Fraud
$4.25 million settlement to be paid in whistleblower lawsuit.
Teachers Paid
LA School District pays 8% interest to teachers for payroll problems.
Paul McCartney
$96 million paid out as divorce settlement.
Auto Financing
Credit Acceptance Corp. agrees to $52.1 million class action settlement after overcharging consumers for fees and interest on automobile installment contracts.
SunTrust HELOC Loan Termination
SunTrust HELOC allegedly violated clients contracts by decreasing, freezing, or terminating HELOC loans.
AnchorBank
$1.27 million in construction contract termination lawsuit.

Tax Time Bomb for Faculty Paid Over 12 Months
U.S. recovers $19 million from AMEC Construction Management in FCA case
“Pay When Paid” vs. “Pay If Paid” Clauses: Mystery vs. Myth
JOB SHOP FINED $509,607 IN BACK WAGES TO H-1B WORKERS








