TX · SERVICE-AGMT · Updated July 2026 · Free
Texas Service Agreement
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Texas at a glance: Late Fee Caps: Subject to Texas usury rules (generally 18% per year) · Limitation of Liability: Enforceable under Texas common law · Governing Law: Texas Business & Commerce Code
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Overview
Service Agreements in Texas
Texas service agreements are governed by common law contract principles and the Texas Business & Commerce Code. Texas is business-friendly, allowing parties broad freedom to contract regarding late fees, liability limits, and dispute locations.
Arbitration clauses are highly favored and widely enforced under the Texas General Arbitration Act.
Key Facts
Texas Service Agreement — Quick Reference
| Requirement | Texas Rule |
|---|---|
| Late Fee Caps | Subject to Texas usury rules (generally 18% per year) |
| Limitation of Liability | Enforceable under Texas common law |
| Governing Law | Texas Business & Commerce Code |
Legal Requirements
Texas Legal Requirements
- Warranty disclaimers (e.g. "as-is" services) must be conspicuous (written in all caps or bold).
Governing Laws
Texas Governing Laws
Tex. Bus. & Com. Code § 17.41
Deceptive Trade Practices Act (DTPA)
Protects business consumers from false, misleading, or deceptive acts.
Read the full text of these laws at Cornell Law School's Texas legal resources or your state legislature's official website.
Questions & Answers
Texas Service Agreement — Frequently Asked Questions
Are limitation of liability clauses enforceable in Texas?
Yes, Texas courts routinely enforce clauses that cap damages at a specific dollar amount or the total fees paid under the contract.