The Ohio Supreme Court recently issued its decision in Transtar Electric, Inc. v. A.E.M. Electric Servs. Corp., Slip Opinion 2014-Ohio-3095. The decision provides certainty where previously there was much confusion with respect to pay-when-paid vs. pay-if-paid provisions in contractual agreements. Namely, it establishes the use of the term "condition precedent" as a valid and enforceable pay-if-paid provision. Such a bright-line rule should simplify contract drafting, negotiation, and enforcement.
Click here to read the full alert.