Limitation on Out Clause Samples
A Limitation on Out clause restricts the circumstances under which a party can withdraw from or terminate an agreement. Typically, this clause specifies certain conditions or events that must occur before a party is allowed to exit the contract, such as failure to meet key obligations or the occurrence of material adverse events. By clearly defining and limiting the grounds for termination, this clause provides stability and predictability to the contractual relationship, preventing parties from backing out too easily and ensuring that both sides are committed to fulfilling their obligations unless specific, agreed-upon situations arise.
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.