Limitation on Out-of-State Litigation - Texas Business and Commerce Code § 272 Sample Clauses
The Limitation on Out-of-State Litigation clause under Texas Business and Commerce Code § 272 restricts parties to certain construction contracts from requiring disputes to be litigated or arbitrated outside of Texas. In practice, this means that any contract for the improvement of real property located in Texas cannot enforce a provision that mandates legal proceedings in another state, regardless of where the parties are based. This clause ensures that Texas-based projects are subject to Texas courts and laws, protecting local contractors and subcontractors from the burden and potential disadvantage of resolving disputes in distant jurisdictions.
Limitation on Out-of-State Litigation - Texas Business and Commerce Code § 272. This is a requirement of the TIPS Contract and is non-negotiable. Texas Business and Commerce Code § 272 prohibits a construction contract, or an agreement collateral to or affecting the construction contract, from containing a provision making the contract or agreement, or any conflict arising under the contract or agreement, subject to another state’s law, litigation in the courts of another state, or arbitration in another state. If included in Texas construction contracts, such provisions are voidable by a party obligated by the contract or agreement to perform the work. By submission of this proposal, Vendor acknowledges this law and if Vendor enters into a construction contract with a Texas TIPS Member under this procurement, Vendor certifies compliance.
Limitation on Out-of-State Litigation - Texas Business and Commerce Code § 272. This is a requirement of the TIPS Contract and is non-negotiable.