Contracts Keyed to Fuller
Koch v. Construction Technology, Inc.
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- Topic: Identifies the topic of law and where this case fits within your course outline.
- Parties: Identifies the cast of characters involved in the case.
- Procedural Posture & History: Shares the case history with how lower courts have ruled on the matter.
- Case Key Terms, Acts, Doctrines, etc.: A case specific Legal Term Dictionary.
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- Brief Facts: A Synopsis of the Facts of the case.
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- Facts: What are the factual circumstances that gave rise to the civil or criminal case? What is the relationship of the Parties that are involved in the case. Review the Facts of this case here:
Construction Technology, Inc. (Defendant) subcontracted the painting portion of a Memphis Housing Authority (MHA) construction project to Koch (Plaintiff). The subcontract included a “pay when paid” clause, which provided, in part, that “payments subject to all applicable provisions of the Contract shall be made when and as payments are received by the Contractor.” After Plaintiff completed all his work, Defendant paid him $148,110.96 but refused to make additional payments because the MHA had not yet paid Defendant in full. Plaintiff sued for breach of contract. Defendant alleged that it was not obligated to pay Plaintiff because payment by MHA is a condition precedent to Defendant’s obligation to pay Plaintiff. The trial court refused to award Plaintiff the full amount due him under the subcontract. The court of appeals affirmed the judgment, holding that the “pay when paid” clause was a condition precedent to Defendant’s obligations to Plaintiff.
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