2016 North Dakota Century Code Title 9 Contracts and Obligations Chapter 9-01 General Provisions
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TITLE 9
CONTRACTS AND OBLIGATIONS
CHAPTER 9-01
GENERAL PROVISIONS
9-01-01. Definitions.
In this title, unless the context or subject matter otherwise requires:
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
thing.
9-01-02. Requisites of contract.
It is essential to the existence of a contract that there should be:
1. Parties capable of contracting;
2. The consent of the parties;
3. A lawful object; and
4. Sufficient cause or consideration.
9-01-03. Executed and executory contracts defined.
An executed contract is one, the object 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 several when:
1. All the parties thereto receive some benefit from the consideration, whether past or
present;
2. 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; or
2. The operation of law.
An obligation arising from operation of law may be enforced in the manner provided by law or by
civil action or proceeding.
9-01-06. Obligations classified.
An obligation imposed upon several persons, or a right created in favor of several persons,
may be:
1. Joint;
2. Several; or
3. 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 in the special cases mentioned in chapter 9-07.
This presumption in the case of a right can be overcome only by express words to the contrary.
9-01-08. Joint obligation - Contribution.
A party to a joint obligation or to a joint and several obligation who satisfies more than that
party's share of the claim against all obligors may require a proportionate contribution from all
the parties joined with that party.
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9-01-09. Conditional obligation defined.
An obligation is conditional when the rights or duties 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 to be performed before some right dependent
thereon accrues or some act dependent thereon is performed.
9-01-12. Conditions concurrent defined.
Conditions concurrent are those which are mutually dependent and are to be performed at
the same time.
9-01-13. Condition subsequent defined.
A condition subsequent is a condition referring to a future event, upon the happening of
which the obligation becomes no longer 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 fulfillment of which is impossible or unlawful within the
meaning of chapter 9-04 or which is repugnant to the nature of the interest created by the
contract, is void.
9-01-15. Forfeiture - Interpretation.
A condition involving a forfeiture must be interpreted strictly against the party for whose
benefit it is created.
9-01-16. Enforcement of obligations - Prerequisites.
Before any party to an obligation can require another party to perform any act under it, that
party shall fulfill all conditions precedent thereto imposed upon that party and must be able, and
shall offer, to fulfill all conditions concurrent so imposed upon that party on the like fulfillment by
the other party, but if one party to the obligation gives notice to another before the latter is in
default that that party will not perform the same upon that party's part and does not retract such
notice before the time at which performance upon that party's part is due, such other party is
entitled to enforce the obligation without previously performing or offering to perform any
conditions upon the other party's part in favor of the former party.
9-01-17. Option to perform alternative acts.
If an obligation requires the performance of one of two acts in the alternative, the party
required to perform has the right of selection, 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 of selection between alternative acts does not give notice of that
party's selection to the other party within the time, if any, fixed by the obligation for that purpose,
or, if none is fixed, before the time 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 between alternative acts shall select one of them in
its entirety and cannot select part of one and part of another without the consent of the other
party.
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9-01-20. Option - Valid act prevails.
If one of the alternative acts required by an obligation is such as the law will not enforce, or
if it becomes unlawful or impossible of performance, the obligation is to be interpreted as though
the other stood alone.
9-01-21. Property service contracts - Exemption.
1. The marketing, selling, offering for sale, issuing, making, providing, or proposing to
make and the administering of a property service contract is not subject to the
provisions of title 26.1.
2. A property service contract is a contract or agreement for a separately stated
consideration, for a specific duration, to provide for the repair, replacement, or
maintenance or for the indemnification for the repair, replacement, or maintenance of
new or used property if an operational or structural failure is due to a defect in
materials, manufacturing, or normal wear and tear. Property covered under a property
service contract may include motor vehicles; residential appliances; residential
systems, including plumbing, electrical, heating, cooling, and ventilation; 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; and
c. Payment of indemnity for incidental damages, such as food spoilage, towing, and
rental and emergency road service.
9-01-22. Wind option agreement - Definition - Termination.
Redesignated as section 17-04-01 under S.L. 2007, ch. 204, § 5.
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