In the State of Texas can there the requirement to accept one contract as part of the acceptance of a second? In other words "If you do not ...

Question

In the State of Texas can there the requirement to accept one contract as part of the acceptance of a second?

In other words "If you do not sigh "contract A" you are not allowed to enter into "contract B"

Situation; I have three contracts to deliver papers for the local paper, to home delivery routes and one commercial. The commercial route (after time and expense) is a looser while the other to show a profit. I as told that if I canceled the commercial contract I would have to cancel the other two as ell.

Should not each of these contracts be capable of standing alone? Is it legal to make the acceptance of one a requirement of the other....these are listed as three separate contract!

Answer

I am free to contract any way I want to (with a few exceptions). I can make it a condition of my contract that you wear a helmet on the jobsite, or that you park your truck at the end of the block, or that you show up every day at 9:00 am.

The right of a party to "cancel" a contract will be contained in the contract itself. Don't go by what you are told.

Answer

As a Franchise Attorney I agree with the other attorney answer. Termination rights are contained within the individual contracts. It's one thing if the commercial contact says any cancellation will be deemed a cancellation of the other contracts. But if it doesn't contain this language, that's entirely different. You need to look at the grounds for termination in all three contracts. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation