Hirschfeld Steel Co. v. Kellogg Brown & Root, Inc.

201 S.W.3d 272 | Texas Court of Appeals, 14th District (Houston) | 2006

enforcedCited 85 timesBATTLE_TESTEDTexas

Warranty Maintenance Obligations Condition Precedent

Holding Summary

Performance of a written maintenance program is not a condition precedent to a subcontractor's ten-year warranty obligation under an unambiguous contract.

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Performance of the written maintenance plan is not a condition precedent to the existence of Hirschfeld's ten-year warranty.
— Texas Court of Appeals, 14th District (Houston), 2006

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A contract clause stating payments are 'expressly contingent upon' receipt of payment from the owner constitutes an enforceable 'pay-if-paid' clause under Texas and New Mexico law, making the owner's payment a condition precedent to the contractor's obligation to pay the subcontractor.