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"No-liens"Clause Ruled Unenforceable Liens; Waiver

Tuesday, August 03, 2004 02:32 pm

"No-liens"Clause Ruled Unenforceable Liens; Waiver

The Connecticut Supreme Court has ruled that an individual purchase order, not a general supply agreement, determined the effective date of a transaction. A "no-liens" provision in the supply agreement was rendered unenforceable by a subsequently enacted statute.

Alstom Power, Inc. entered into a supply agreement with Balcke-Durr, Inc. on July 5, 1998. The supply agreement called for Balcke-Durr to manufacture and supply equipment to be used in power plants. The agreement contained general terms and conditions and detailed technical specifications, but was not specific to any project and did not obligate Alstom to purchase any [...]

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