Gulf Construction Co. v. Self
Court of Appeals of Texas
676 S.W.2d 624
Relevant factsFree
Gulf Construction (defendant) subcontracted work to Shaw Plumbing and Calvin Self (plaintiffs), with the subcontracts providing that Gulf would be paid by the project owner, Good Hope, before payment was due to the subcontractors; when Good Hope filed for bankruptcy during construction, Gulf refused to pay the subcontractors, who sued and won at trial. Gulf appealed, arguing the payment provision was a condition precedent excusing its performance once Good Hope's payment never came.
IssueFree
Whether an agreement should be interpreted as creating a covenant rather than a condition precedent where the intent of the parties is doubtful or where a condition precedent would impose an absurd or impossible result.
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