Texas Business and Commerce Code 56.051 – Enforcement of Clause Prohibited to Extent Certain Contractual Obligations Not Met
Current as of: 2024 | Check for updates
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A contingent payor or its surety may not enforce a contingent payment clause to the extent that the obligor’s nonpayment to the contingent payor is the result of the contractual obligations of the contingent payor not being met, unless the nonpayment is the result of the contingent payee’s failure to meet the contingent payee’s contractual requirements.