{"data":{"id":"us-tx/tex.-business-commerce-code-56.051","jurisdiction":"us-tx","citation":"Tex. Business \u0026 Commerce Code § 56.051","heading":"ENFORCEMENT OF CLAUSE PROHIBITED TO EXTENT CERTAIN CONTRACTUAL OBLIGATIONS NOT MET.","body":"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.\nAdded by Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 4.001(a), eff. September 1, 2009.","path":["BUSINESS AND COMMERCE CODE","TITLE 4. BUSINESS OPPORTUNITIES AND AGREEMENTS","CHAPTER 56. AGREEMENT FOR PAYMENT OF CONSTRUCTION SUBCONTRACTOR","SUBCHAPTER B. CONTINGENT PAYMENT CLAUSE"],"source_url":"https://statutes.capitol.texas.gov/Docs/BC/htm/BC.56.htm#56.051","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:46:56Z","sha256":"38a14f21d13ba81ca09334f39697d1966419133f3d22726fe8d657d77e8b866d","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-business-commerce-code-56.004","next":"us-tx/tex.-business-commerce-code-56.052"},"notice":"GroundRules: Original legal text. Not legal advice."}