Texas House Bill HB1957

Texas 2019 - 86th Regular

Caption

Relating to a provision of a contract that conflicts with state law.

Impact

The introduction of this bill is significant because it reaffirms the controlling power of state law over contractual agreements. This change aims to reduce ambiguity for businesses and individuals engaging in contracts, especially in cases where there might be a conflict with existing state laws. By doing so, HB1957 could potentially minimize disputes and litigation regarding conflicting terms in contracts, thus promoting a more stable business environment.

Summary

House Bill 1957 addresses the hierarchy of legal authority in the context of contracts conflicting with state law. Specifically, it stipulates that if any provision within a contract contradicts state law, the state law will prevail. This is established under a new chapter in the Business and Commerce Code. The bill aims to provide clarity and predictability in commercial transactions by ensuring that state laws take precedence, thereby protecting the legal framework governing contracts within Texas.

Contention

While the intention behind HB1957 is largely focused on providing legal clarity, there may be points of contention regarding how this law could affect existing contracts formed under previous interpretations of the law. Some stakeholders might argue that the bill could undermine certain contractual rights or protections granted under previous legal frameworks. Moreover, the language around the non-impairment of contracts suggests a careful balance that needs to be maintained to prevent unjust interference with enforceable agreements already in place.