Uniform Interparty Agreement Act

This act concerns the validity of transactions and agreements between parties, confirming that such dealings take effect and create enforceable obligations rather than failing on technical grounds. Its principal mechanism addresses the common-law doctrine of merger — the rule that a contractual obligation is extinguished once the duty to perform and the right to enforce it come to rest in the same person — so that an obligation may continue to exist despite that convergence. It preserves the ordinary law governing fraudulent transactions, applies only prospectively to transactions occurring after it takes effect, and directs that it be construed so as to make the law uniform among the states that enact it.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.