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Texas Business & Commerce Code

§ 56.051 — ENFORCEMENT OF CLAUSE PROHIBITED TO EXTENT CERTAIN CONTRACTUAL OBLIGATIONS NOT MET

BC § 56.051Title 4. BUSINESS OPPORTUNITIES AND AGREEMENTS · Ch. 56. AGREEMENT FOR PAYMENT OF CONSTRUCTION SUBCONTRACTOR · Art. B. CONTINGENT PAYMENT CLAUSE

Statute text

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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.

Legislative history

Added by Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 4.001(a), eff. September 1, 2009.

Source: Texas Business & Commerce Code § 56.051 from the Texas Constitution and Statutes (Texas Legislature) (public record). DecisionDepot is for informational use only and is not legal advice — verify against the official source before relying on this text.