Tex. Business & Commerce Code § 56.051
This is the official text of Tex. Business & Commerce Code § 56.051, part of Texas’s Business & Commerce Code — governs commercial transactions and general business practices.
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§ 56.051. ENFORCEMENT OF CLAUSE PROHIBITED TO EXTENT CERTAIN CONTRACTUAL OBLIGATIONS NOT MET.
Official statutory text
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.
Status: in_force · Read it on the official government site
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