Which of the following is true for pay-if-paid clauses between contractors and subcontractors where the contractor is unpaid by the owner?
A) in the absence of default by a subcontractor, they create the only possible excuse for a contractor who has not paid a subcontractor
B) they are never enforced by the courts
C) the triggering event for a pay-if-paid clause is a breach of contract between the contractor and the subcontractor
D) none of the above

Question

Quizplus · Accepted Answer

A pay-if-paid clause may justify a contractor not paying a subcontractor even though that subcontractor completely performed the subcontract. Such clauses have been enforced by some courts, but generally courts avoid enforcing them if they can.

Which of the Following Is True for Pay-If-Paid Clauses Between