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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, <meta property="og:url" content="https://statutes.laws.com/test/" /> <meta property="og:site_name" content="Statutes" /> <meta property="article:modified_time" content="2019-12-27T23:25:16+00:00" /> <meta name="twitter:card" content="summary_large_image" /> <h2>State Codes and Statutes</h2> <a href='https://statutes.laws.com/'>Statutes</a> > <a href='https://statutes.laws.com/north-dakota'>North-dakota</a> > <a href='https://statutes.laws.com/north-dakota/t09'>T09</a> > <a href='https://statutes.laws.com/north-dakota/t09/t09c01'>T09c01</a><br><br><a href="https://law.justia.com/codes/north-dakota/2009/t09/pdf/t09c01.pdf">Download pdf</a><br><div id="embed_document" style="width:625px; height:815px; text-align:center;">Loading PDF...</div><script type="text/javascript"> var pdf_url = 'https://law.justia.com/codes/north-dakota/2009/t09/pdf/t09c01.pdf'; $(document).ready(function() { var embedwindow = $("#embed_document"); if ($.browser.msie){ embedwindow.html('<embed src="'+pdf_url+'" width="100%" height="100%"></embed>'); } else { embedwindow.html('<iframe style="width:100%; height:100%;" src="https://docs.google.com/gview?url='+window.escape(pdf_url)+'&embedded=true" frameborder="0"></iframe>'); } });</script><br><br><noframes>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, <script type="application/ld+json" class="yoast-schema-graph">{"@context":"https://schema.org","@graph":[{"@type":"WebPage","@id":"https://statutes.laws.com/test/","url":"https://statutes.laws.com/test/","name":"State Codes and Statutes - Statutes","isPartOf":{"@id":"https://statutes.laws.com/#website"},"datePublished":"2015-03-10T03:31:37+00:00","dateModified":"2019-12-27T23:25:16+00:00","breadcrumb":{"@id":"https://statutes.laws.com/test/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https://statutes.laws.com/test/"]}]},{"@type":"BreadcrumbList","@id":"https://statutes.laws.com/test/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https://statutes.laws.com/"},{"@type":"ListItem","position":2,"name":"State Codes and Statutes"}]},{"@type":"WebSite","@id":"https://statutes.laws.com/#website","url":"https://statutes.laws.com/","name":"Statutes","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://statutes.laws.com/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"}]}</script> <!-- / Yoast SEO Premium plugin. --> <link rel='dns-prefetch' href='//fonts.googleapis.com' /> <link rel="alternate" type="application/rss+xml" title="Statutes &raquo; Feed" href="https://statutes.laws.com/feed/" /> <script type="text/javascript"> /* <![CDATA[ */ window._wpemojiSettings = {"baseUrl":"https:\/\/s.w.org\/images\/core\/emoji\/14.0.0\/72x72\/","ext":".png","svgUrl":"https:\/\/s.w.org\/images\/core\/emoji\/14.0.0\/svg\/","svgExt":".svg","source":{"concatemoji":"https:\/\/statutes.laws.com\/wp-includes\/js\/wp-emoji-release.min.js?ver=e9ae2245a59484c8e270e38ea5c9a014"}}; /*! 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class="shortcode-content"> <h2>State Codes and Statutes</h2> <a href='https://statutes.laws.com/'>Statutes</a> > <a href='https://statutes.laws.com/north-dakota'>North-dakota</a> > <a href='https://statutes.laws.com/north-dakota/t09'>T09</a> > <a href='https://statutes.laws.com/north-dakota/t09/t09c01'>T09c01</a><br><br><a href="https://law.justia.com/codes/north-dakota/2009/t09/pdf/t09c01.pdf">Download pdf</a><br><div id="embed_document" style="width:625px; height:815px; text-align:center;">Loading PDF...</div><script type="text/javascript"> var pdf_url = 'https://law.justia.com/codes/north-dakota/2009/t09/pdf/t09c01.pdf'; $(document).ready(function() { var embedwindow = $("#embed_document"); if ($.browser.msie){ embedwindow.html('<embed src="'+pdf_url+'" width="100%" height="100%"></embed>'); } else { embedwindow.html('<iframe style="width:100%; height:100%;" src="https://docs.google.com/gview?url='+window.escape(pdf_url)+'&embedded=true" frameborder="0"></iframe>'); } });</script><br><br><noframes>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, <!-- END .shortcode-content --> </div> </div> <!-- END .main-content-left --> </div> <!-- BEGIN .main-content-right --> <div class="main-content-right"> <!-- BEGIN .main-nosplit --> <div class="main-nosplit"> <!--<div class="widget-0 first panel"> <h3>Advertising</h3> <script type="text/javascript"> /* var rkbspt = document.createElement('script'); rkbspt.type = 'text/javascript'; rkbspt.src = 'https://c.amazon-adsystem.com/aax2/getads.js'; var rkbscpt = document.querySelector('.widget-0.panel').appendChild(rkbspt); rkbscpt.onload = function(){ aax_getad_mpb({ "slot_uuid":"557c365d-8984-4710-a63b-62d1baabc10e" }); }; */ </script> <script id="mNCC" language="javascript"> medianet_width = "336"; medianet_height = "280"; medianet_crid = "436333511"; medianet_versionId = "3111299"; </script> <script src="//contextual.media.net/nmedianet.js?cid=8CUC4DD64"></script> <script type="text/javascript"> var e9 = new Object(); e9.size = 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