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Tex. Business & Commerce Code § 56.053

ENFORCEMENT OF CLAUSE PROHIBITED IF EXISTENCE OF SHAM RELATIONSHIP

Texas · Texas Business & Commerce Code · Status: effective

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Tex. Business & Commerce Code § 56.053, ENFORCEMENT OF CLAUSE PROHIBITED IF EXISTENCE OF SHAM RELATIONSHIP, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/630735
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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.