Article Date: 06/18/2007

SUBCONTRACT "PAY-WHEN-PAID" CLAUSE RULED AMBIGUOUS

Court of Appeals of Missouri, Eastern District

Lobo Painting, Inc. v. Lamb Construction Company

No. ED88807
June 19, 2007

Overview

A Missouri court has ruled that a “pay-when-paid” clause in a subcontract was ambiguous as to whether it was intended to make the prime contractor’s payment obligation contingent upon receipt of payment from the project owner.

Background

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