Sec. 56.053. ENFORCEMENT OF CLAUSE PROHIBITED IF EXISTENCE OF SHAM RELATIONSHIP. A contingent payor or its surety may not enforce a contingent payment clause if the contingent payor is in a sham relationship with the obligor, as described by the sham relationships in Section 53.026, Property Code.
Added by Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 4.001(a), eff. September 1, 2009.
Structure Texas Statutes
Title 4 - Business Opportunities and Agreements
Chapter 56 - Agreement for Payment of Construction Subcontractor
Subchapter B. Contingent Payment Clause
Section 56.051. Enforcement of Clause Prohibited to Extent Certain Contractual Obligations Not Met
Section 56.052. Enforcement of Clause Prohibited Following Notice From Contingent Payee
Section 56.053. Enforcement of Clause Prohibited if Existence of Sham Relationship
Section 56.054. Enforcement of Clause Prohibited if Unconscionable