GroundRules
Tex. Business & Commerce Code § 56.051: ENFORCEMENT OF CLAUSE PROHIBITED TO EXTENT CERTAIN CONTRACTUAL OBLIGATIONS NOT MET.
Where this section sits in the code
- BUSINESS AND COMMERCE CODE
- TITLE 4. BUSINESS OPPORTUNITIES AND AGREEMENTS
- CHAPTER 56. AGREEMENT FOR PAYMENT OF CONSTRUCTION SUBCONTRACTOR
- SUBCHAPTER B. CONTINGENT PAYMENT CLAUSE
A contingent payor or its surety may not enforce a contingent payment clause to the extent that the obligor's nonpayment to the contingent payor is the result of the contractual obligations of the contingent payor not being met, unless the nonpayment is the result of the contingent payee's failure to meet the contingent payee's contractual requirements.
Added by Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 4.001(a), eff. September 1, 2009.
Collected 2026-08-27T01:46:56Z. Source file · JSON