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will a "pay if paid" contract clause (not "pay when paid") affect our lien rights in NJ?

New YorkConstruction Contract

contract negotiations. client wont take out pay if paid. we are in NY, they are in NJ

1 reply

Dec 6, 2018
That's a fair question, and the answer as to whether a "pay if paid" or "pay when paid" provision will be effective may depend on the rest of the contract - most contracts will dictate which state's laws will apply. In New Jersey, pay if paid provisions will be enforceable - but only if the provision is clear and unambiguous. So, lien rights could potentially be affected by such a provision. In New York, pay if paid provisions are unenforceable as they pertain to lien rights. If you're at all curious about these clauses in other states - here's a free resource breaking down both pay-if-paid and pay-when-paid clauses in all 50 states: Pay If Paid & Pay When Paid Provisions Breakdown.
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