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Flow-Down Provisions: “Subject To” Language, Standing Alone, May Not Be Enough

If a general contractor-subcontractor dispute arises where the subcontract has a different dispute resolution provision than that of the prime contract, which clause governs? For example, the prime contract requires disputes to be litigated in state court, but the subcontract requires arbitration of disputes. Whether a court will enforce the dispute resolution clause in the prime contract as valid and binding on the subcontractor may depend on the existence and specific language of a “flow-down” provision. CONTINUE READING...

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