§ 15.020.Major Transactions: Specification of Venue by Agreement

Title 2. Trial, Judgment, and Appeal · Subtitle B. Trial Matters · Chapter 15. Venue · Subchapter B. Mandatory Venue · Last amended 2025 · Last verified August 29, 2026

In one sentenceSection 15.020 enforces venue agreements in transactions worth $1 million or more — both the county chosen and the counties excluded — with exceptions for unconscionability and specified void agreements.

Full Text of § 15.020

Text sizeJump to: (a) (b) (c) (d) (e)

(a)In this section, "major transaction" means a transaction evidenced by a written agreement under which a person pays or receives, or is obligated to pay or entitled to receive, consideration with an aggregate stated value equal to or greater than $1 million. The term does not include a transaction entered into primarily for personal, family, or household purposes, or to settle a personal injury or wrongful death claim, without regard to the aggregate value.

(b)An action arising from a major transaction shall be brought in a county if the party against whom the action is brought has agreed in writing that a suit arising from the transaction may be brought in that county.

(c)Notwithstanding any other provision of this title, an action arising from a major transaction may not be brought in a county if:

(1)the party bringing the action has agreed in writing that an action arising from the transaction may not be brought in that county, and the action may be brought in another county of this state or in another jurisdiction; or

(2)the party bringing the action has agreed in writing that an action arising from the transaction must be brought in another county of this state or in another jurisdiction, and the action may be brought in that other county, under this section or otherwise, or in that other jurisdiction.

(d)This section does not apply to an action if:

(1)the agreement described by this section was unconscionable at the time that it was made;

(2)the agreement regarding venue is void under Chapter 272, Business & Commerce Code; or

(3)venue is established under a statute of this state other than this title.

(e)This section does not affect venue and jurisdiction in an action arising from a transaction that is not a major transaction.

End

Plain-English Summary

Texas generally does not let parties contract for venue. This section is the exception, and it is drawn by transaction size.

A major transaction is one evidenced by a written agreement under which a person pays, receives, or is obligated for or entitled to consideration with an aggregate stated value of $1 million or more.

The section works in both directions. An action arising from a major transaction shall be brought in a county the party being sued agreed to in writing. And it may not be brought in a county the plaintiff agreed in writing not to sue in — or a county other than the one they agreed suit must be brought in — provided an alternative forum in Texas or elsewhere is available.

So a well-drafted forum clause in a large commercial agreement both fixes a county and forecloses the others, which is precisely what such clauses are for and what Texas otherwise refuses to allow.

Three exceptions. The section does not apply where the agreement was unconscionable when made, where the venue agreement is void under Chapter 272 of the Business & Commerce Code, or where venue is established by a Texas statute outside this title.

Subsection (e) confirms that nothing here affects venue or jurisdiction for transactions below the threshold — which remain governed by the ordinary rules, forum clause or not.

Frequently Asked Questions

Are venue clauses enforceable in Texas?

Generally no, but this section enforces them for a major transaction — one evidenced by a written agreement with consideration of $1 million or more.

Does a forum clause stop me suing elsewhere?

In a major transaction, yes. The section bars suit in a county you agreed not to sue in, or outside the county you agreed to, provided another forum is available.

What is a major transaction?

One evidenced by a written agreement under which a person pays, receives, or is obligated for consideration with an aggregate stated value of at least $1 million.

When will a venue agreement not be enforced?

If it was unconscionable when made, if it is void under Chapter 272 of the Business & Commerce Code, or if venue is fixed by a Texas statute outside this title.

What about smaller contracts?

They are unaffected. Venue for transactions below the threshold follows the ordinary rules regardless of any forum clause.

Amendment History

Added by Acts 1999, 76th Leg., ch. 84, Sec. 1, eff. Aug. 30, 1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.10, eff. April 1, 2009.
Acts 2025, 89th Leg., R.S., Ch. 427 (H.B. 2960), Sec. 3, eff. September 1, 2025.

Source & verification. Section text is reproduced verbatim from Texas Legislature Online (statutes.capitol.texas.gov). Enacted by the Texas Legislature. Current through May 14, 2026. Last verified August 29, 2026. · Official source