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This entry was published on 2014-09-22
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SECTION 5-1704
Provisions prohibited in transfer agreement
General Obligations (GOB) CHAPTER 24-A, ARTICLE 5, TITLE 17
§ 5-1704. Provisions prohibited in transfer agreement. No transfer
agreement or other document or agreement executed in association with
the transfer shall contain any provision described in this section. To
the extent that a prohibited provision is included in a transfer
agreement such provision shall be void and unenforceable. A prohibited
provision is:

(a) any provision that waives the payee's right to sue under any law,
or where the payee agrees not to sue, or which waives jurisdiction or
standing to sue under the transfer agreement;

(b) any provision that requires the payee to indemnify and hold
harmless the transferee, or to pay the transferee's costs of defense, in
any claim or action brought by the payee on or the payee's behalf
contesting the transfer for any reason;

(c) any provision that requires the payee to pay the transferee's
attorney's fees or costs if the transfer contemplated by the transfer
agreement is not completed; and

(d) any provision that requires the payee to pay any tax liability
arising under federal tax laws, other than the seller's own tax
liability, if any, that results from the transfer.