Tex. Bus. & Com. Code Section 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 (Sham Contract), Property Code.
Added by Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 4.001(a), eff. September 1, 2009.

Source: Section 56.053 — Enforcement of Clause Prohibited if Existence of Sham Relationship, https://statutes.­capitol.­texas.­gov/Docs/BC/htm/BC.­56.­htm#56.­053 (accessed Jun. 5, 2024).

Accessed:
Jun. 5, 2024

§ 56.053’s source at texas​.gov