Texas Business & Commerce Code - Section 35.52. Law Applicable To Construction Contracts
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§ 35.52. LAW APPLICABLE TO CONSTRUCTION CONTRACTS. (a)
If a contract is principally for the construction or repair of
improvements to real property located in this state and the
contract contains a provision that makes the contract or any
conflict arising under it subject to the law of another state, to
litigation in the courts of another state, or to arbitration in
another state, that provision is voidable by the party that is
obligated by the contract to perform the construction or repair.
(b) A contract is principally for the construction or repair
of improvements to real property located in this state if the
contract obligates a party, as its principal obligation under the
contract, to provide labor, or labor and materials, for the
construction or repair of improvements to real property located in
this state as a general contractor or subcontractor.
(c) A contract is not principally for the construction or
repair of improvements to real property located in this state if:
(1) the contract is a partnership agreement or other
agreement governing an entity or trust;
(2) the contract provides for a loan or other
extension of credit and the party promising to construct or repair
improvements does so as part of its agreements with the lender or
other extender of credit; or
(3) the contract is for the management of real
property or improvements and the obligation to construct or repair
is part of that management.
(d) Subsections (b) and (c) of this section are not an
exclusive list of situations in which a contract is or is not
principally for the construction or repair of improvements to real
property located in this state.
Added by Acts 1993, 73rd Leg., ch. 570, § 13, eff. Sept. 1, 1993.
Section: 35.455 35.46 35.47 35.48 35.49 35.50 35.51 35.52 35.53 35.531 35.54 35.55 35.56 35.57 35.58
Last modified: August 10, 2007
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