CHAPTER 272. LAW APPLICABLE TO CERTAIN CONTRACTS FOR CONSTRUCTION OR REPAIR OF REAL PROPERTY IMPROVEMENTS - Texas Statutes

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.