Tex. Business & Commerce Code § 56.053
This is the official text of Tex. Business & Commerce Code § 56.053, part of Texas’s Business & Commerce Code — governs commercial transactions and general business practices.
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§ 56.053. ENFORCEMENT OF CLAUSE PROHIBITED IF EXISTENCE OF SHAM RELATIONSHIP.
Official statutory text
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.
Status: in_force · Read it on the official government site
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