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Germany: “Pay-when-paid” clauses in General Contractor GTCs held invalid

May 23, 2012

In a decision dated November 7th, 2011, the District Court of Saarbrücken (Germany) found a “pay-when-paid” clause within a general terms and conditions contract used by a General Contractor to be invalid (3 O 201/11). The Court held that, in the sub-contracting arena, there is no good reason to allow a General Contractor to pass…

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