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Prohibition On Pay-if-paid Contracts Did Not Override Parties'choice-of-law

Thursday, January 04, 2007 11:21 am

 
Prohibition On Pay-if-paid Contracts Did Not Override Parties'choice-of-law

The Court of Appeals of New York ruled that although state law prohibits pay-if-paid contracts, the public policy supporting the law is not so fundamental that the statute trumps the parties' decision to apply the law of a state that allows such contracts.

Telergy Metro retained MasTec North America, Inc. to build a fiber optic telecommunications network in New York. Telergy was a Florida corporation and MasTec is a Delaware corporation. MasTec subcontracted with Welsbach Electric Corp. to do the electrical work for the project. The subcontract included a pay-if-paid clause. Termination, suspension or dela [...]

 
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