A contract may not require the purchaser to execute a note or series of notes if separate negotiation of the notes cuts off as to third parties a right of action or defense that the purchaser may assert against the seller.
Tex. Occ. Code § 702.310
EFFECT OF CONTRACT ON THIRD-PARTY RIGHTS
Known as the Health Spa Act
The act spans §§ 702–702 (65 sections).
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff
Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.