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§ 172.004.Commercial Agreement

Title 7. Alternate Methods of Dispute Resolution · Chapter 172. Arbitration and Conciliation of International Commercial Disputes · Subchapter A. General Provisions · Last amended 1997 · Last verified August 29, 2026

In one sentenceSection 172.004 makes an agreement commercial if it arises out of a relationship of a commercial nature, and lists supply, distribution, agency, concession, joint venture, carriage, and a long run of service and property relationships.

Full Text of § 172.004

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An arbitration or conciliation agreement is commercial if it arises out of a relationship of a commercial nature, including:
(1)a transaction for the supply or exchange of goods or services;
(2)a distribution agreement;
(3)a commercial representation or agency;
(4)an exploitation agreement or concession;
(5)a joint venture or other related form of industrial or business cooperation;
(6)the carriage of goods or passengers by air, sea, rail, or road;
(7)a relationship involving:
(A)construction;
(B)insurance;
(C)licensing;
(D)factoring;
(E)leasing;
(F)consulting;
(G)engineering;
(H)financing;
(I)banking;
(J)professional services; or
(K)intellectual or industrial property, including trademarks, patents, copyrights, and software programs; or
(8)the transfer of data or technology.
End

Plain-English Summary

The other half of the gateway, and it is written as an open list.

The test is the nature of the relationship — whether the agreement arises out of a relationship of a commercial nature.

The examples that follow do not limit it. The section says including, so a relationship of a commercial nature qualifies whether or not it is named.

Trade relationships lead the list: a transaction for the supply or exchange of goods or services, a distribution agreement, a commercial representation or agency.

Investment structures follow — an exploitation agreement or concession, and a joint venture or other related form of industrial or business cooperation.

Transport is named across every mode: carriage of goods or passengers by air, sea, rail or road.

Then comes the longest item, a list of relationships involving construction, insurance, licensing, factoring, leasing, consulting, engineering, financing, banking, professional services, and intellectual or industrial property including trademarks, patents, copyrights and software.

The list closes with the transfer of data or technology.

The breadth is deliberate. The point is to keep courts from narrowing "commercial" to sales of goods, which would leave most modern cross-border business outside the chapter.

Both gates must be passed. An agreement must be commercial under this section and international under Section 172.003 for the chapter to apply.

Frequently Asked Questions

What makes an agreement commercial?

That it arises out of a relationship of a commercial nature. The section lists many examples without limiting the definition.

Are services and intellectual property included?

Yes — professional services, consulting, engineering, licensing, and intellectual or industrial property including software are all named.

Does an agreement have to be both commercial and international?

Yes. Sections 172.003 and 172.004 are two gates, and both must be passed.

Amendment History

  • Added by Acts 1989, 71st Leg., ch. 109, Sec. 1, eff. Sept. 1, 1989. Redesignated from Vernon's Ann.Civ.St. art. 249-4 and amended by Acts 1995, 74th Leg., ch. 588, Sec. 1, eff. Sept. 1, 1995. Amended by
  • Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1, 1997.
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