Texas Business and Commerce Code
Sec. § 57.155
Notice of Termination; Correction of Deficiency


Except as otherwise provided by this section, a supplier must provide a dealer written notice of termination of a dealer agreement at least 180 days before the effective date of termination. The notice must state all reasons constituting good cause for the termination and that the dealer has 60 days in which to cure any claimed deficiency. If the deficiency is cured within 60 days, the notice will be void.


A supplier, other than a specialty agricultural equipment supplier, may not terminate a dealer agreement for the reason stated in Section 57.154 (Good Cause Determination)(a)(12) unless the supplier gives the dealer notice of the action at least two years before the effective date of the termination. If the dealer achieves the supplier’s requirements for reasonable standards or performance objectives before the expiration of the two-year notice period, the notice will be void and the dealer agreement will continue in effect.


The notice and right to cure provisions in this section do not apply if the reason for termination is for any reason stated in Sections 57.154 (Good Cause Determination)(a)(2)-(11).
Added by Acts 2011, 82nd Leg., R.S., Ch. 1039 (H.B. 3079), Sec. 2, eff. September 1, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 482 (S.B. 1415), Sec. 1, eff. September 1, 2013.
Last accessed
Jul. 11, 2020