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Gulf Construction Co. v. Self
Court of Appeals of Texas
676 S.W.2d 624
Gulf Construction Company, Inc. (Gulf Construction) (defendant) entered into a contract with Good Hope Chemical Corporation (Good Hope) for the construction of buildings. Gulf Construction then entered into three subcontracts with Shaw Plumbing Company and Calvin Self individually and d/b/a Industrial Electric Company (subcontractors) (plaintiffs). The subcontracts contained a provision requiring Gulf Construction to be paid by Good Hope before payment was due to the subcontractors. After construction began, Good Hope filed for bankruptcy. As a result, Gulf Construction refused to pay the subcontractors. The subcontractors filed suit. The trial court found for the subcontractors. Gulf Construction appealed arguing that the provision requiring payment from Good Hope before payment was due to the subcontractors was a condition precedent that excused Gulf Construction’s performance.
Rule of Law
Holding and Reasoning (Utter, J.)
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