Texas Business and Commerce Code
Sec. § 57.204
Notice of Termination; Correction of Deficiency


Except as provided by Subsection (b) and Section 57.205 (Notice of Termination Not Required Under Certain Circumstances), a supplier shall provide a dealer with at least 90 days written notice of termination. The notice must state all reasons constituting good cause for the termination and state 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.


Notwithstanding Subsection (a), if the good cause reason for termination is due to the dealers failure to meet or maintain the suppliers requirements for market penetration, a reasonable period of time has existed where the supplier has worked with the dealer to gain the desired market share.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1039 (H.B. 3079), Sec. 2, eff. September 1, 2011.
Last accessed
Apr. 8, 2020