Pay-if-paid and pay-when-paid clauses permeate large construction projects In theory, the clauses protect a contractor from downstream liability where its upstream or hiring party (usually the owner) fails to pay. Beal Bank Nevada v. Northshore Center THC, LLC, 2016 IL App (1st) 151697 examines the fine-line distinction between PIP and PWP contract terms. a lender …
Tag Archives: condition precedent
Fraud, Economic Loss and Contractual Integration Clauses (And More): Illinois Fed Court Provides Primer
Plaintiff purchased the defendant’s nation-wide network of auto collision centers as part of a complicated $32.5M asset purchase agreement (APA). A dispute arose when the plaintiff paid $9.5M to a paint supply company and creditor of the defendant in order to consummate the APA. The plaintiff argued that the defendant breached the APA by not …