Missouri Statute | Act | Code |Contracts And Contractual Relations| US Code - US Statute | Chapter 431 General Provisions As To Contracts

The use of private seals in written contracts, conveyances of
real estate, and all other instruments of writing heretofore required by
law to be sealed (except the seals of corporations), is hereby abolished,
but the addition of a private seal to any such instrument shall not in
any manner affect its force, validity or character, or in any way change
the construction thereof. (RSMo 1939 § 3344) Prior revisions: 1929 §
2957; 1919 § 2159; 1909 2773

All instruments of writing made and signed by any person or his
agent, whereby he shall promise to pay to any other, or his order, or
unto bearer, any sum of money or property therein mentioned, shall import
a consideration, and be due and payable as therein specified. (RSMo 1939
§ 3345)

Prior revisions: 1929 § 2958; 1919 § 2160; 1909 § 2774

(1954) Where written contract on its face appears unilateral and
unenforceable, this section does not apply to shift the burden of showing
no consideration to defendant. Middleton v. Holecroft (A.), 270 S.W.2d 90.

(1955) Bond, given by purchaser of land to insure against forbidden use,
which was executed by corporation in manner prescribed by statute,
acknowledged and recorded held admissible in evidence and imported a
consideration. Cook v. Tide Water Associated Oil Co. (A.), 281 S.W.2d 415.

(1961) Instrument worded "If at the time of my death you are still alive,
I, Joseph Kaiser, I owe you $10,000 for value received" imported
consideration and was a valid enforceable contract. Burrell v. Kaiser's
Estate (A.), 344 S.W.2d 622.

All parts of any contract or agreement hereafter made or entered
into which either directly or indirectly limit or tend to limit the time
in which any suit or action may be instituted, shall be null and void.
(RSMo 1939 § 3351)

Prior revisions: 1929 § 2964; 1919 § 2166; 1909 § 2780

CROSS REFERENCE: Parties may reduce time for suit from four years to not
less than one year by agreement, RSMo 400.2-725

(1965) This section includes insurance policies. Lumbermen's Mutual
Casualty Co. v. Norris Grain Co., 343 F.2d 670.

Any person, firm or corporation doing business in this state as
nurserymen or tree dealers, who shall falsely represent the grade or
variety of any fruit trees, vines, shrubs, plants or bulbs which they
sell, shall be guilty of a misdemeanor, and responsible for double the
purchase price of such fruit trees, vines, shrubs, plants or bulbs as
damage, to be recovered by the purchaser of same. (RSMo 1939 § 14059)

Prior revisions: 1929 § 12392; 1919 § 11962; 1909 § 628

Any nurserymen or tree dealers who shall sell and contract to
deliver any fruit trees, vines, shrubs, plants or bulbs for planting, and
shall fail to deliver said fruit trees, vines, shrubs, plants or bulbs at
a time and season proper for the planting and growth of such fruit trees,
vines, shrubs, plants or bulbs, said contract shall be voidable at the
option of the purchaser, who shall have the further right of recovery for
any damage they may incur by the failure to receive said fruit trees,
vines, shrubs, plants or bulbs at a proper season for the planting and
growth of said fruit trees, vines, shrubs, plants or bulbs. (RSMo 1939 §
14060)

Prior revisions: 1929 § 12393; 1919 § 11963; 1909 § 629

The legal age at which a person becomes competent to contract in
Missouri is eighteen years and any rule or provision of the common law to
the contrary is hereby abrogated. (L. 1974 2d Ex. Sess. S.B. 3 § 2)

Effective 1-7-75

CROSS REFERENCE: Conveyances by minors binding, when, RSMo 442.080

(1979) Covenant not to sue is contract within meaning of term "contract"
as to 18 years of age as legal age at which person becomes competent to
contract. Holoman v. Harris (A.), 585 S.W.2d 530.

A minor shall be qualified and competent to contract for
housing, employment, purchase of an automobile, receipt of a student
loan, admission to high school or postsecondary school, obtaining medical
care, establishing a bank account and admission to a shelter for victims
of domestic violence, as defined in section 455.200, RSMo, or a homeless
shelter if:

(1) The minor is sixteen or seventeen years of age; and

(2) The minor is homeless, as defined in subsection 1 of section 167.020,
RSMo, or a victim of domestic violence, as defined in section 455.200,
RSMo, unless the child is under the supervision of the children's
division or the jurisdiction of the juvenile court; and

(3) The minor is self-supporting, such that the minor is without the
physical or financial support of a parent or legal guardian; and

(4) The minor's parent or legal guardian has consented to the minor
living independent of the parents' or guardians' control. Consent may be
expressed or implied, such that:

(a) Expressed consent is any verbal or written statement made by the
parents or guardian of the minor displaying approval or agreement that
the minor may live independently of the parent's or guardian's control;

(b) Implied consent is any action made by the parent or guardian of the
minor that indicates the parent or guardian is unwilling or unable to
adequately care for the minor. Such actions may include, but are not
limited to:

a. Barring the minor from the home or otherwise indicating that the minor
is not welcome to stay;

b. Refusing to provide any or all financial support for the minor; or

c. Abusing or neglecting the minor, as defined in section 210.110, RSMo.
(L. 2000 S.B. 757 & 602, A.L. 2004 H.B. 1453)

1. As used in this section, the following terms mean:

(1) "Child", a child less than eighteen years of age;

(2) "Health care provider", a person licensed to practice medicine and
surgery by the state board of registration for the healing arts, a person
who holds a temporary permit to practice medicine and surgery issued by
the state board of registration for the healing arts, a person engaged in
a postgraduate training program in medicine and surgery approved by the
state board of registration for the healing arts, a medical care facility
licensed by the department of health and senior services, a health
maintenance organization issued a certificate of authority by the
director of insurance, a licensed professional nurse, a licensed
practical nurse and a registered physician's assistant. The term "health
care provider" shall also include the following entities: a professional
corporation organized pursuant to the professional corporation law of
Missouri by persons who are health care providers, a Missouri limited
liability company organized for the purpose of rendering professional
services by its members who are health care providers, a partnership of
persons who are health care providers or a Missouri not-for-profit
corporation organized for the purpose of rendering professional services
by persons who are health care providers;

(3) "Parent":

(a) A child's parent by birth or adoption;

(b) A child's legal guardian; or

(c) Any person who under court order is authorized to give consent for a
child.

2. A parent may delegate in writing the parent's authority to consent to
the immunization of a child to another adult.

3. Subject to the provisions of subsections 3 to 6 of this section, any
adult may consent to the immunization of a child if a parent is not
reasonably available and the authority to consent is not denied under
subsection 4 of this section.

4. A person may not consent to the immunization of a child under
subsection 3 of this section if:

(1) The person has actual knowledge that the parent has expressly refused
to give consent to the immunization; or

(2) The parent has told the person that the person may not consent to the
immunization of the child or, in the case of a written authorization, has
withdrawn the authorization in writing.

5. For purposes of this section, a parent is not reasonably available if
the location of the parent or legal guardian is unknown and could not be
ascertained, despite diligent searching.

6. A person authorized to consent to the immunization of a child under
the provisions of subsections 3 to 6 of this section shall confirm in
writing that the parent is not reasonably available, and the written
confirmation shall be included in the child's medical record.

7. A grandparent, brother or sister, aunt or uncle or stepparent of a
child who is the primary caregiver of a child and who may consent to the
immunization of the child pursuant to the provisions of subsection 2 of
this section may delegate in writing the authority to consent to
immunization of the child to another adult.

8. A health care provider may rely on a document from another state,
territory or country that contains substantially the same information as
is required in any immunization consent rules and regulations of the
department of health and senior services if the document is presented for
consent by a person as authorized pursuant to the provisions of this
section.

9. A person who consents to immunization of a child under this section
shall provide the health care provider with sufficient and accurate
health information about the child for whom the consent is given and, if
necessary, sufficient and accurate health information about the child's
family to enable the person providing the consent and the health care
provider to determine adequately the risks and benefits inherent in the
proposed immunization and determine whether the immunization is advisable.

10. The responsibility of a health care provider to provide information
to a person consenting to the immunization of a child as provided by this
section is the same as the health care provider's responsibility to a
parent.

11. Except for acts of willful misconduct or gross negligence, a person
who consents to the immunization of a child as provided by this section
shall not be liable for damages arising from any such immunization
administered by a person authorized by law to administer immunizations in
this state. (L. 1996 H.B. 904, et al. § 2)

No action shall be maintained whereby to charge any person upon
any debt contracted before such person becomes eighteen years of age,
unless such person shall have ratified the same by some other act than a
verbal promise to pay the same; and the following acts on the part of
such person after he becomes eighteen years of age shall constitute a
ratification of such debt:

(1) An acknowledgment of, or promise to pay such debt, made in writing;

(2) A partial payment upon such debt;

(3) A disposal of part or all of the property for which such debt was
contracted;

(4) A refusal to deliver property in his possession or under his control,
for which such debt was contracted, to the person to whom the debt is
due, on demand therefor made in writing. (RSMo 1939 § 3358, A.L. 1974 2d
Ex. Sess. S.B. 3)

Prior revisions: 1929 § 2971; 1919 § 2173; 1909 § 2786

Effective 1-7-75

CROSS REFERENCE: Contracts for attorney fees and expenses of suit, RSMo
507.182 to 507.186

(1955) Where infant, on misrepresentation of his age, negotiated loan and
mortgage from bank, he was precluded from recovering from bank deposits
which the bank had applied on his loan after it became due and unpaid.
Infancy, however, held defense to counterclaims of bank for the
difference between infant's loans and his deposits. Byers v. Lemay Bank &
Trust Co., 365 Mo. 341, 282 S.W.2d 512.

(1959) Infant who induces another to contract with him by misrepresenting
to adults that he is of age, resulting in injury, is liable in tort and
probate court record of guardianship is not constructive notice that
minor is not of age. Royal Finance Co. v. Schaefer (A.), 330 S.W.2d 129.

(1961) In action by landlord against married minor for rent and damages
to premises landlord could not recover on ground housing constituted
necessity in absence of showing that minor was not supplied with suitable
housing by his parent or guardian or of reasonable rental value of rooms
occupied. Johnson v. Horton (A.), 343 S.W.2d 653, cert. denied 82 S.Ct.
529.

1. In addition to such other persons as may be so authorized and
empowered, any one of the following persons if otherwise competent to
contract, is authorized and empowered to consent, either orally or
otherwise, to any surgical, medical, or other treatment or procedures not
prohibited by law:

(1) Any adult eighteen years of age or older for himself;

(2) Any parent for his minor child in his legal custody;

(3) Any minor who has been lawfully married and any minor parent or legal
custodian of a child for himself, his child and any child in his legal
custody;

(4) Any minor for himself in case of:

(a) Pregnancy, but excluding abortions;

(b) Venereal disease;

(c) Drug or substance abuse including those referred to in chapter 195,
RSMo;

(5) Any adult standing in loco parentis, whether serving formally or not,
for his minor charge in case of emergency as defined in section 431.063;

(6) Any guardian of the person for his ward;

(7) During the absence of a parent so authorized and empowered, any adult
for his minor brother or sister;

(8) During the absence of a parent so authorized and empowered, any
grandparent for his minor grandchild;

(9) "Absence" as used in (7) and (8) above shall mean absent at a time
when further delay occasioned by an attempt to obtain a consent may
jeopardize the life, health or limb of the person affected, or may result
in disfigurement or impairment of faculties.

2. For purposes of consent to hospitalization or medical, surgical or
other treatment or procedures, a "minor" shall be defined as any person
under eighteen years of age and an "adult" shall be defined as any person
eighteen years of age or older.

3. The provisions of sections 431.061 and 431.063 shall be liberally
construed, and all relationships set forth in subsection 1 of this
section shall include the adoptive and step-relationship as well as the
natural relationship and the relationship by the half blood as well as by
the whole blood.

4. A consent by one person so authorized and empowered shall be
sufficient notwithstanding that there are other persons so authorized and
empowered or that such other persons shall refuse or decline to consent
or shall protest against the proposed surgical, medical or other
treatment or procedures.

5. Any person acting in good faith and not having been put on notice to
the contrary shall be justified in relying on the representations of any
person purporting to give such consent, including, but not limited to,
his identity, his age, his marital status, and his relationship to any
other person for whom the consent is purportedly given. (L. 1971 H.B. 73
§ 1, A.L. 1977 S.B. 48)

(1985) Section 431.062, RSMo, requires that a parent must expressly agree
to pay for any treatment provided under this section, or he is not liable
for such payment. Missouri Osteopathic Foundation v. Ott, (A.) 702 S.W.2d
495.

CROSS REFERENCES: Consent to immunization may be delegated to other
persons, when, RSMo 431.058 Mandatory insurance coverage of
immunizations, exceptions, RSMo 376.1215

Whenever a minor is examined, treated, hospitalized, or receives
medical or surgical care under subdivision (4) of subsection 1 of section
431.061:

(1) His consent shall not be subject to disaffirmance or revocation
because of minority;

(2) The parent, parents, or conservator shall not be liable for payment
for such care unless the parent, parents, or conservator has expressly
agreed to pay for such care;

(3) A physician or surgeon may, with or without the consent of the minor
patient, advise the parent, parents, or conservator of the examination,
treatment, hospitalization, medical and surgical care given or needed if
the physician or surgeon has reason to know the whereabouts of the
parent, parents, or conservator. Such notification or disclosure shall
not constitute libel or slander, a violation of the right of privacy or a
violation of the rule of privileged communication. In the event that the
minor is found not to be pregnant or not afflicted with a venereal
disease or not suffering from drug or substance abuse, then no
information with respect to any appointment, examination, test or other
medical procedure shall be given to the parent, parents, conservator or
any other person. (L. 1971 H.B. 73 § 2, A.L. 1983 S.B. 44 & 45, A.L. 1987
H.B. 357)

In addition to any other instances in which a lack of consent is
excused or in which a consent is implied at law, a consent to surgical or
medical treatment or procedures shall be implied where an emergency
exists if there has been no protest or refusal of consent by a person
authorized and empowered to consent, or, if so, there has been a
subsequent change in the condition of the person affected that is
material and morbid, and there is no one immediately available who is
authorized, empowered, willing and capacitated to consent. For the
purposes hereof, an "emergency" is defined as a situation wherein, in
competent medical judgment, the proposed surgical or medical treatment or
procedures are immediately or imminently necessary and any delay
occasioned by an attempt to obtain a consent would reasonably jeopardize
the life, health or limb of the person affected, or would reasonably
result in disfigurement or impairment of faculties. (L. 1971 H.B. 73 § 3,
A.L. 1977 S.B. 48)

1. When an adult person, because of a medical condition, is
treated by a teaching hospital for a medical school accredited by the
American Osteopathic Association or the American Medical Association and
such person is incapable of giving informed consent for an experimental
treatment, test or drug, then such treatment, test or drug may proceed
upon obtaining consent of a legal guardian, attorney-in-fact, or a family
member in the following order of priority:

(1) Spouse unless the patient has no spouse, or is separated, or the
spouse is physically or mentally incapable of giving consent, or the
spouse's whereabouts is unknown or the spouse is overseas;

(2) Adult child;

(3) Parent;

(4) Brother or sister;

(5) Relative by blood or marriage.

2. Nothing in this section shall authorize such legal guardian,
attorney-in-fact, or family member to consent to treatment in
contravention to such incapacitated person's expressed permission
regarding such treatment. (L. 1993 H.B. 564 § 33, A.L. 2003 S.B. 431)

Any minor who has been lawfully married and any minor parent or
legal custodian of a child, if otherwise competent to contract, shall be
considered an adult for the purpose of entering into a contract for
surgical, medical, or other treatment or procedures for himself, his
spouse, his child and any child in his legal custody. (L. 1961 p. 248 §
1, A.L. 1977 S.B. 48)

1. When any minor eighteen years or older, being married, and
the beneficiary of a policy of insurance on the life of his spouse
becomes entitled to any benefits under the policy of insurance due to the
death of his spouse, the insuror may pay the proceeds of the policy, not
to exceed ten thousand dollars, to the minor beneficiary without the
necessity of conservatorship or any other proceedings in any court.

2. The signed acknowledgment of the minor beneficiary shall constitute a
legal receipt.

3. The acknowledgment of the minor beneficiary shall not be subject to
disaffirmance upon the minor attaining twenty-one years of age. (L. 1973
S.B. 24 § 1, A.L. 1983 S.B. 44 & 45)

Any minor may execute legally binding promissory notes and may
legally contract to borrow money to defray the necessary expenses of
attending any accredited university, college or conservatory, and shall
have full legal capacity to act in his own behalf for the purpose, and
shall have all the rights, powers and privileges and be subject to the
obligations of persons of full age with respect to the contracts and
notes. (L. 1963 p. 647 § 1)

1. Notwithstanding the provisions of section 431.061, any person
seventeen years of age or older may donate blood voluntarily without the
necessity of obtaining the permission or authorization of his or her
parent or guardian.

2. No person under the age of eighteen shall receive compensation for any
blood donated without the written authorization of his or her parent or
guardian. (L. 1979 S.B. 208 § 1)

The procurement, processing, distribution or use of whole blood,
plasma, blood products, blood derivatives and other human tissues,
including but not limited to corneas, bones, hearts or other organs for
the purpose of injecting, transfusing or transplanting any of them into
the human body is declared to be, for all purposes, the rendition of a
service by every person, firm, or corporation participating therein and,
whether or not any remuneration is paid therefor, is declared not to be a
sale of such whole blood, plasma, blood products, blood derivatives or
other tissues, bones or organs for any purpose subsequent to enactment of
this section. It is further declared that any implied warranties of
merchantability and fitness for a particular purpose shall not be
applicable as to a defect that cannot be detected or removed by
reasonable use of scientific procedures or techniques. Nothing herein
shall relieve any person, firm or corporation from negligence. (L. 1971
S.B. 7 § 1)

(1992) Under statutes, the collection, processing and distribution of
blood by American Red Cross is a service, not a sale of goods; therefore,
an action for strict products liability is not available. Smith v.
Paslode Corp., 799 F.Supp. 960 (E.D. Mo.).

All notes, bonds, bills, contracts, covenants, agreements or
writings made whereby any person shall be bound to any county, or to the
inhabitants thereof, or to the governor, or to any other person, in
whatever form, for the payment of money or any debt or duty, or the
performance of any matter or thing, for the use of any county, shall be
valid and effectual to vest in such county all the rights, interests and
actions which would be vested in any individual, in any such contract
made directly to him. (RSMo 1939 § 13764)

Prior revisions: 1929 § 12105; 1919 § 9503; 1909 § 3724

CROSS REFERENCES: Contracts of political subdivisions, requirements for
validity, RSMo 432.070 County budget law, RSMo 50.660

Suits may be commenced and prosecuted thereon in the name of
such county, or in the name of the person to whom they are made, to the
use of the county, as fully and effectually as any person may or can,
upon like notes, bills, bonds, contracts, agreements or writings made to
him. (RSMo 1939 § 13765)

Prior revisions: 1929 § 12106; 1919 § 9504; 1909 § 3725

The county commission may, by an order entered of record,
appoint an agent to make any contract on behalf of such county for
erecting any county buildings, or for any other purpose authorized by
law; and the contract of such agent, duly executed on behalf of such
county, shall bind such county if pursuant to law and such order of the
commission. (RSMo 1939 § 13766)

Prior revisions: 1929 § 12107; 1919 § 9505; 1909 § 3726

If a claim against a county be for work and labor done, or
material furnished in good faith by the claimant, under contract with the
county authorities, or with any agent of the county lawfully authorized,
the claimant, if he shall have fulfilled his contract, shall be entitled
to recover the just value of such work, labor and material, though such
authorities or agent may not, in making such contract, have pursued the
form of proceedings prescribed by law. (RSMo 1939 § 13768)

Prior revisions: 1929 § 12109; 1919 § 9507; 1909 § 3728

(1957) Writ of mandamus to compel presiding judge to sign warrant for
work allegedly performed by contractor under oral agreement made with the
other two judges without the knowledge of the presiding judge and at a
time court was not in session, refused. State ex rel. Walton v. Miller
(A.), 297 S.W.2d 611.

All contracts which, by the common law, are joint only, shall be
construed to be joint and several. (RSMo 1939 § 3340)

Prior revisions: 1929 § 2953; 1919 § 2155; 1909 § 2769

CROSS REFERENCE: Joint liability of partners, partnership contracts, RSMo
358.150

In case of the death of one or more of the joint obligors or
promisors, the joint debt or contract shall and may survive against the
heirs, executors and administrators of the deceased obligor or promisor,
as well as against the survivors. (RSMo 1939 § 3341)

Prior revisions: 1929 § 2954; 1919 § 2156; 1909 § 2770

When all the obligors or promisors shall die, the debt or
contract shall survive against the heirs, executors and administrators of
all the deceased joint obligors and promisors. (RSMo 1939 § 3342)

Prior revisions: 1929 § 2955; 1919 § 2157; 1909 § 2771

In all cases of joint obligations and joint assumptions of
copartners or others, suits may be brought and prosecuted against any one
or more of those who are so liable. (RSMo 1939 § 3343)

Prior revisions: 1929 § 2956; 1919 § 2158; 1909 § 2772

It shall be lawful for every creditor of two or more debtors,
joint or several, to compound with any and every one or more of his
debtors for such sum as he may see fit, and to release him or them from
all further liability to him for such indebtedness, without impairing his
right to demand and collect the balance of such indebtedness from the
other debtor or debtors thereof, and not so released; provided, that no
such release shall impair the right of any debtor of such indebtedness,
not so released, to have contribution from his codebtors, as is by law
now secured to him. (RSMo 1939 § 3348)

Prior revisions: 1929 § 2961; 1919 § 2163; 1909 § 2777

It shall not be in the power of the assignor of a demand, after
assignment, to release any part of it, nor shall any assignee obtain
greater title thereto or interest therein than the person had from whom
it was acquired. (RSMo 1939 § 3346)

Prior revisions: 1929 § 2959; 1919 § 2161; 1909 § 2775

CROSS REFERENCES: Assignment of benefit rights under unemployment
compensation law void, RSMo 288.380 Consignments of grain by railroad to
elevator subject to change, RSMo 389.550 Counterclaims against assignor,
asserted in action on assigned claim, RSMo 509.480 Mechanics' liens,
assignment, RSMo 429.160

The assignee of a bond, nonnegotiable note or account, may
maintain an action against the assignor, upon failure to obtain payment
from the obligor, maker or debtor, only in one of the following cases:

(1) If he use due diligence in the institution and prosecution of a suit
against the obligor, maker or debtor, for the recovery of the money or
property due, or damages in lieu thereof;

(2) If the obligor, maker or debtor is insolvent, or is not a resident of
this state, so that a suit would be unavailing or could not be
instituted. (RSMo 1939 § 3347)

Prior revisions: 1929 § 2960; 1919 § 2162; 1909 § 2776

1. All persons who enter into a contract for private design or
construction work after August 28, 1995, shall make all scheduled
payments pursuant to the terms of the contract.

2. Any person who has not been paid in accordance with subsection 1 of
this section may bring an action in a court of competent jurisdiction
against a person who has failed to pay. The court may in addition to any
other award for damages, award interest at the rate of up to one and
one-half percent per month from the date payment was due pursuant to the
terms of the contract, and reasonable attorney fees, to the prevailing
party. If the parties elect to resolve the dispute by arbitration
pursuant to section 435.350, RSMo, the arbitrator may award any remedy
that a court is authorized to award hereunder.

3. The provisions of this section shall not apply to contracts for
private construction work for the building, improvement, repair or
remodeling of owner-occupied residential property of four units or less.

4. For purposes of this section, design or construction work shall
include design, construction, alteration, repair or maintenance of any
building, roadway or other structure or improvement to real property, or
demolition or* excavation connected therewith, and shall include the
furnishing of surveying, architectural, engineering or landscape design,
planning or management services, labor or materials, in connection with
such work. (L. 1995 S.B. 93, A.L. 1999 H.B. 343)

*Word "of" appears in original rolls.

1. Any person who enters into a contract with a transportation
of property provider or an agent acting for a transportation of property
provider for the transportation of property shall, after the property has
been delivered in good condition by the transportation provider to the
agreed-upon destination within the agreed-upon time limitation, make all
scheduled payments pursuant to the terms of the contract or within thirty
days if no time is specified in the contract.

2. Any person who has not been paid in accordance with subsection 1 of
this section may bring an action in a court of competent jurisdiction
against any person who has failed to pay.

3. Retailers who sell and service industrial, maintenance and
construction power equipment or outdoor power equipment as defined in
section 407.850, RSMo, and who do warranty repair work for a consumer
under provisions of a manufacturer's express warranty, shall be
reimbursed by the manufacturer for the warranty work at an hourly labor
rate that is the same or greater than the hourly labor rate the retailer
currently charges consumers for nonwarranty repair work. (L. 2001 S.B.
244)

Any provision in a contract, agreement or understanding that
provides that a payment from a contractor to a subcontractor, trade
contractor, specialty contractor or supplier is contingent or conditioned
upon receipt of a payment from any other private party, including a
private owner, is no defense to a claim to enforce a mechanic's lien
pursuant to the provisions of chapter 429, RSMo. (L. 1995 S.B. 93)

1. A reasonable covenant in writing promising not to solicit,
recruit, hire or otherwise interfere with the employment of one or more
employees shall be enforceable and not a restraint of trade pursuant to
subsection 1 of section 416.031, RSMo, if:

(1) Between two or more corporations or other business entities seeking
to preserve workforce stability (which shall be deemed to be among the
protectable interests of each corporation or business entity) during, and
for a reasonable period following, negotiations between such corporations
or entities for the acquisition of all or a part of one or more of such
corporations or entities;

(2) Between two or more corporations or business entities engaged in a
joint venture or other legally permissible business arrangement where
such covenant seeks to protect against possible misuse of confidential or
trade secret business information shared or to be shared between or among
such corporations or entities;

(3) Between an employer and one or more employees seeking on the part of
the employer to protect:

(a) Confidential or trade secret business information; or

(b) Customer or supplier relationships, goodwill or loyalty, which shall
be deemed to be among the protectable interests of the employer; or

(4) Between an employer and one or more employees, notwithstanding the
absence of the protectable interests described in subdivision (3) of this
subsection, so long as such covenant does not continue for more than one
year following the employee's employment; provided, however, that this
subdivision shall not apply to covenants signed by employees who provide
only secretarial or clerical services.

2. Whether a covenant covered by this section is reasonable shall be
determined based upon the facts and circumstances pertaining to such
covenant, but a covenant covered exclusively by subdivision (3) or (4) of
subsection 1 of this section shall be conclusively presumed to be
reasonable if its postemployment duration is no more than one year.

3. Nothing in * subdivision (3) or (4) of subsection 1 of this section is
intended to create, or to affect the validity or enforceability of,
employer-employee covenants not to compete.

4. Nothing in this section shall preclude a covenant described in
subsection 1 of this section from being enforceable in circumstances
other than those described in subdivisions (1) to (4) of subsection 1 of
this section, where such covenant is reasonably necessary to protect a
party's legally permissible business interests.

5. Nothing is this section shall be construed to limit an employee's
ability to seek or accept employment with another employer immediately
upon, or at any time subsequent to, termination of employment, whether
said termination was voluntary or nonvoluntary.

6. This section shall have retrospective as well as prospective effect.
(L. 2001 S.B. 288)

Effective 7-1-01

*Word "this" appears here in original rolls.

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