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9-01 General Provisions

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TITLE 9CONTRACTS AND OBLIGATIONSCHAPTER 9-01GENERAL PROVISIONS9-01-01.Definitions.In this title, unless the context or subject matter otherwiserequires:1.A contract is an agreement to do or not to do a certain thing.2.An obligation is a legal duty by which a person is bound to do or not to do a certain<br>thing.9-01-02. Requisites of contract. It is essential to the existence of a contract that thereshould be:1.Parties capable of contracting;2.The consent of the parties;3.A lawful object; and4.Sufficient cause or consideration.9-01-03. Executed and executory contracts defined. An executed contract is one, theobject of which is performed fully. All other contracts are executory.9-01-04. Joint and several contracts. A promise is presumed to be joint and severalwhen:1.All the parties thereto receive some benefit from the consideration, whether past or<br>present; and2.It is made in the singular number but executed by several persons.9-01-05. Origin and enforcement of obligations. An obligation arises from:1.The contract of the parties; or2.The operation of law.An obligation arising from operation of law may be enforced in the manner provided by law or by<br>civil action or proceeding.9-01-06. Obligations classified. An obligation imposed upon several persons, or a rightcreated in favor of several persons, may be:1.Joint;2.Several; or3.Joint and several.9-01-07. Joint obligation - Presumption. An obligation imposed upon several persons,or a right created in favor of several persons, is presumed to be joint and not several, except inPage No. 1the special cases mentioned in chapter 9-07. This presumption in the case of a right can be<br>overcome only by express words to the contrary.9-01-08. Joint obligation - Contribution. A party to a joint obligation or to a joint andseveral obligation who satisfies more than that party's share of the claim against all obligors may<br>require a proportionate contribution from all the parties joined with that party.9-01-09. Conditional obligation defined. An obligation is conditional when the rights orduties of any party thereto depend upon the occurrence of an uncertain event.9-01-10.Conditions of obligation - Classification.Conditions may be precedent,concurrent, or subsequent.9-01-11. Condition precedent defined. A condition precedent is a condition which is tobe performed before some right dependent thereon accrues or some act dependent thereon is<br>performed.9-01-12. Conditions concurrent defined. Conditions concurrent are those which aremutually dependent and are to be performed at the same time.9-01-13.Condition subsequent defined.A condition subsequent is a conditionreferring to a future event, upon the happening of which the obligation becomes no longer<br>binding upon the other party if that party chooses to apply that condition.9-01-14. Conditions unlawful or impossible. A condition in a contract, the fulfillmentof which is impossible or unlawful within the meaning of chapter 9-04 or which is repugnant to the<br>nature of the interest created by the contract, is void.9-01-15.Forfeiture - Interpretation.A condition involving a forfeiture must beinterpreted strictly against the party for whose benefit it is created.9-01-16. Enforcement of obligations - Prerequisites. Before any party to an obligationcan require another party to perform any act under it, that party shall fulfill all conditions<br>precedent thereto imposed upon that party and must be able, and shall offer, to fulfill all<br>conditions concurrent so imposed upon that party on the like fulfillment by the other party, but if<br>one party to the obligation gives notice to another before the latter is in default that that party will<br>not perform the same upon that party's part and does not retract such notice before the time at<br>which performance upon that party's part is due, such other party is entitled to enforce the<br>obligation without previously performing or offering to perform any conditions upon the other<br>party's part in favor of the former party.9-01-17. Option to perform alternative acts. If an obligation requires the performanceof one of two acts in the alternative, the party required to perform has the right of selection,<br>unless it is provided otherwise by the terms of the obligation.9-01-18. Option - Limitation of time for performance. If the party having the right ofselection between alternative acts does not give notice of that party's selection to the other party<br>within the time, if any, fixed by the obligation for that purpose, or, if none is fixed, before the time<br>at which the obligation ought to be performed, the right of selection passes to the other party.9-01-19. Option - Selection in entirety. The party having the right of selection betweenalternative acts shall select one of them in its entirety and cannot select part of one and part of<br>another without the consent of the other party.9-01-20.Option - Valid act prevails.If one of the alternative acts required by anobligation is such as the law will not enforce, or if it becomes unlawful or impossible of<br>performance, the obligation is to be interpreted as though the other stood alone.9-01-21. Property service contracts - Exemption.Page No. 21.The marketing, selling, offering for sale, issuing, making, providing, or proposing to<br>make and the administering of a property service contract is not subject to the<br>provisions of title 26.1.2.A property service contract is a contract or agreement for a separately stated<br>consideration, for a specific duration, to provide for the repair, replacement, or<br>maintenance or for the indemnification for the repair, replacement, or maintenance<br>of new or used property if an operational or structural failure is due to a defect in<br>materials, manufacturing, or normal wear and tear.Property covered under aproperty service contract may include motor vehicles; residential appliances;<br>residential systems, including plumbing, electrical, heating, cooling, and ventilation;<br>and other residential property. The contract may provide coverage for:a.Damage to property resulting from power surges;b.Accidental damage to property resulting from handling; andc.Payment of indemnity for incidental damages, such as food spoilage, towing,<br>and rental and emergency road service.9-01-22. Wind option agreement - Definition - Termination. Redesignated as section17-04-01 under S.L. 2007, ch. 204, </p> <BR></DIV><!-- /.col.one --><!-- /.col.two --></DIV><!-- /.col.main --></DIV><!-- /div id = content --> <BR class=clear></DIV> <!-- /div id = livearea --> <DIV></DIV><!-- /.col.one --> <DIV></DIV><!-- /.col.main --> <DIV></DIV><!-- /#content --><BR class=clear> <DIV></DIV><!-- /#livearea --> <!-- Footer--> <DIV id=footer> <DIV class=container> <P class=copyright>Copyright &copy; 2012-2022 Laws9.Com All rights reserved. </P><!-- /.copyright --> <P class=footerlinks><A href="/contactus.html">Contact Us</A> | <A href="/aboutus.html">About Us</A> | <A href="/terms.html">Terms</A> | <A href="/privacy.html">Privacy</A></P><!-- /.footerlinks --> </DIV><!-- /.container --> </DIV><!-- /footer --> </BODY></HTML>