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Owner occupied dwelling not under AZ prompt payment act

for an owner occupied dwelling that is not under the AZ prompt payment act (not included in the contract signed in 2015) are we back to common law to govern the rights for withholding payment if the contractor is not performing? If so, thoughts on what cases might be controlling?

1 reply

Sep 14, 2020

It will depend on the terms of the contract and the facts of the case. As a general matter, the first material breach of the contract excuses the non-breaching party from further performance. So if the contractor screwed something up really badly, there may be grounds to withhold payment subject to any contract terms that may apply. The issue is less what case law applies than what the facts are.

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