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

Answered 2 weeks ago

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Matt Viator

Legal Associate zlien

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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