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,</div></article><aside class="right-sidebar"><div class="related-sidebar"><h3><span class="emoji">⚖️</span> State Laws</h3><ul class="state-laws-list"><li><a href="https://state-laws.laws.com/state-of-alabama">The State Laws of Alabama</a></li><li><a href="https://state-laws.laws.com/state-of-alaska">The State Laws of Alaska</a></li><li><a href="https://state-laws.laws.com/state-of-arizona">The State Laws of Arizona</a></li><li><a href="https://state-laws.laws.com/state-of-arkansas">The State Laws of Arkansas</a></li><li><a href="https://state-laws.laws.com/state-of-california">The State Laws of California</a></li><li><a href="https://state-laws.laws.com/state-of-colorado">The State Laws of Colorado</a></li><li><a href="https://state-laws.laws.com/state-of-connecticut">The State Laws of Connecticut</a></li><li><a href="https://state-laws.laws.com/state-of-delaware">The State Laws of Delaware</a></li><li><a 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height:815px; text-align:center;\"\u003eLoading PDF...\u003c/div\u003e\u003cscript type=\"text/javascript\"\u003e 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('\u003cembed src=\"'+pdf_url+'\" width=\"100%\" height=\"100%\"\u003e\u003c/embed\u003e'); } else { embedwindow.html('\u003ciframe style=\"width:100%; height:100%;\" src=\"https://docs.google.com/gview?url='+window.escape(pdf_url)+'\u0026embedded=true\" frameborder=\"0\"\u003e\u003c/iframe\u003e'); } });\u003c/script\u003e\u003cbr\u003e\u003cbr\u003e\u003cnoframes\u003eTITLE 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\u003cbr\u003ething.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\u003cbr\u003epresent; 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\u003cbr\u003ecivil 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\u003cbr\u003eovercome 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\u003cbr\u003erequire 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\u003cbr\u003eperformed.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\u003cbr\u003ebinding 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\u003cbr\u003enature 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\u003cbr\u003eprecedent thereto imposed upon that party and must be able, and shall offer, to fulfill all\u003cbr\u003econditions concurrent so imposed upon that party on the like fulfillment by the other party, but if\u003cbr\u003eone party to the obligation gives notice to another before the latter is in default that that party will\u003cbr\u003enot perform the same upon that party's part and does not retract such notice before the time at\u003cbr\u003ewhich performance upon that party's part is due, such other party is entitled to enforce the\u003cbr\u003eobligation without previously performing or offering to perform any conditions upon the other\u003cbr\u003eparty'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,\u003cbr\u003eunless 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\u003cbr\u003ewithin the time, if any, fixed by the obligation for that purpose, or, if none is fixed, before the time\u003cbr\u003eat 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\u003cbr\u003eanother 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\u003cbr\u003eperformance, 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\u003cbr\u003emake and the administering of a property service contract is not subject to the\u003cbr\u003eprovisions of title 26.1.2.A property service contract is a contract or agreement for a separately stated\u003cbr\u003econsideration, for a specific duration, to provide for the repair, replacement, or\u003cbr\u003emaintenance or for the indemnification for the repair, replacement, or maintenance\u003cbr\u003eof new or used property if an operational or structural failure is due to a defect in\u003cbr\u003ematerials, manufacturing, or normal wear and tear.Property covered under aproperty service contract may include motor vehicles; residential appliances;\u003cbr\u003eresidential systems, including plumbing, electrical, heating, cooling, and ventilation;\u003cbr\u003eand 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,\u003cbr\u003eand rental and emergency road service.9-01-22. Wind option agreement - Definition - Termination. 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