Texas Business & Commerce Code - Section 42.004. Continuity Of Contract
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Texas Lawyer > Business & Commerce Code > Texas Business & Commerce Code - Section 42.004. Continuity Of Contract
§ 42.004. CONTINUITY OF CONTRACT. (a) If a subject or
medium of payment of a contract, security, or instrument is the
European currency unit or a currency that has been substituted or
replaced by the euro, the euro is a commercially reasonable
substitute and substantial equivalent that may be:
(1) used in determining the value of the European
currency unit or currency, as appropriate; or
(2) tendered, in each case, at the conversion rate
specified in, and otherwise computed in accordance with, the
regulations adopted by the Council of the European Union.
(b) A person may perform any obligation described by
Subsection (a) in euros or in the currency or currencies originally
designated in the contract, security, or instrument if that
currency or those currencies remain legal tender, but the person
may not perform those obligations in any other currency, regardless
of whether that other currency:
(1) has been substituted or replaced by the euro; or
(2) is considered a denomination of the euro and has a
fixed conversion rate with respect to the euro.
(c) The following occurrences are not considered a
discharge of, do not excuse performance under, and do not give a
party the right to unilaterally alter or terminate a contract,
security, or instrument:
(1) the introduction of the euro;
(2) the tender of euros in connection with any
obligation described by Subsection (a);
(3) the determination of the value of any obligation
described by Subsection (a); or
(4) the computation or determination of the subject or
medium of payment of a contract, security, or instrument with
reference to an interest rate or any other basis that has been
substituted or replaced because of the introduction of the euro and
that is a commercially reasonable substitute and substantial
equivalent.
Added by Acts 1999, 76th Leg., ch. 971, § 1, eff. June 18, 1999.
Section: 41.252 41.301 41.302 41.303 42.001 42.002 42.003 42.004 42.005 43.001 43.002 43.003 43.004 43.005 43.006
Last modified: August 10, 2007
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