Contingent Payment Clauses: Are Pay-If-Paid and Pay-When-Paid Clauses Enforceable In Your State?

Pay-If-Paid and Pay-When-Paid are contingent payment clauses. But what’s the difference between the two and are they enforceable?

“A contingent payment clause is a contractual provision that makes payment contingent upon the happening of some event. In construction subcontracts, the typical contingent payment clause makes the subcontractor’s payment contingent upon the payment of the contractor by the owner.” — American Subcontractors Association

Download this resource to learn more about Pay-If-Paid and Pay-When-Paid, including which states do/don’t enforce these clauses.

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