CHAPTER 272. LAW APPLICABLE TO CERTAIN CONTRACTS FOR CONSTRUCTION OR REPAIR OF REAL PROPERTY IMPROVEMENTS
BUSINESS AND COMMERCE CODE
TITLE 9. APPLICABILITY OF LAW TO COMMERCIAL TRANSACTIONS
CHAPTER 272. LAW APPLICABLE TO CERTAIN CONTRACTS FOR CONSTRUCTION
OR REPAIR OF REAL PROPERTY IMPROVEMENTS
Sec. 272.001. VOIDABLE CONTRACT PROVISION. (a) This section
applies only to a contract that is principally for the
construction or repair of an improvement to real property located
in this state.
(b) If a contract contains a provision making the contract or
any conflict arising under the contract subject to another
state's law, litigation in the courts of another state, or
arbitration in another state, that provision is voidable by the
party obligated by the contract to perform the construction or
repair.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 272.002. CONTRACT PRINCIPALLY FOR CONSTRUCTION OR REPAIR OF
REAL PROPERTY IMPROVEMENTS. (a) For purposes of this chapter, a
contract is principally for the construction or repair of an
improvement to real property located in this state if the
contract obligates a party, as the party's principal obligation
under the contract, to provide labor or labor and materials as a
general contractor or subcontractor for the construction or
repair of an improvement to real property located in this state.
(b) For purposes of this chapter, a contract is not principally
for the construction or repair of an improvement to real property
located in this state if the contract:
(1) is a partnership agreement or other agreement governing an
entity or trust;
(2) provides for a loan or other extension of credit and the
party promising to construct or repair the improvement is doing
so as part of the party's agreements with the lender or other
person who extends credit; or
(3) is for the management of real property or improvements and
the obligation to construct or repair the improvement is part of
that management.
(c) Subsections (a) and (b) do not provide an exclusive list of
the situations in which a contract is or is not principally for
the construction or repair of an improvement to real property
located in this state.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.