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Which of the Following Is True for Pay-If-Paid Clauses Between

Question 2

Multiple Choice

Which of the following is true for pay-if-paid clauses between contractors and subcontractors where the contractor is unpaid by the owner?


A) in the absence of default by a subcontractor, they create the only possible excuse for a contractor who has not paid a subcontractor
B) they are never enforced by the courts
C) the triggering event for a pay-if-paid clause is a breach of contract between the contractor and the subcontractor
D) none of the above

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