Tag: Contract Law
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What to consider before agreeing to an arbitration clause in a Texas contract
Texas law strongly favors the enforcement of arbitration agreements, treating them as contracts subject to the same principles that govern other contracts. To be enforceable, an arbitration clause must be part of a valid, written agreement that satisfies the elements of contract formation—offer, acceptance, mutual assent, consideration, and, where required, execution and delivery. Once a Read more
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Commonly Litigated Provisions in Texas Employment Contracts
The most commonly litigated clauses in Texas employment contracts are covenants not to compete (noncompete agreements), non-solicitation and confidentiality provisions, arbitration clauses, and terms relating to at-will employment and termination. The key legal issues center on statutory enforceability requirements, reasonableness of restrictions, consideration, judicial reformation, preemption of common law, and the limits of contractual modification Read more
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The Right to Cancel Certain Contracts in Texas
In Texas, the three-day right to cancel (cooling-off period) generally applies to consumer transactions resulting from personal solicitation at a location other than the merchant’s place of business—commonly known as “home solicitation sales”—as well as certain contracts for the sale of manufactured homes and some home improvement contracts. Tex. Bus. & Com. Code §§ 601.001 Read more
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The Four-Corners Rule
The four-corners rule is a principle of contract interpretation requiring courts to determine the meaning and intent of a written agreement solely from the text within its four corners, without considering extrinsic evidence unless the contract is ambiguous. Texas courts follow this rule in both general contract and insurance contexts, with limited exceptions recognized primarily Read more
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Does Texas enforce Covenants Not to Compete?
Texas law permits the enforcement of covenants not to compete, but only under specific statutory conditions. The Texas Covenants Not to Compete Act, codified in the Texas Business and Commerce Code, requires that such covenants be tied to an otherwise enforceable agreement and be reasonable in their restrictions regarding time, geography, and scope of activity, Read more