Tex. Codes » Business Organizations Code · TITLE 1. GENERAL PROVISIONS · CHAPTER 10. MERGERS, INTEREST EXCHANGES, CONVERSIONS, AND SALES OF ASSETS
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Tex. Bus. Orgs. Code § 10.254 (2026)

Disposition Of Property Not A Merger Or Conversion; Liability

✓ current as of May 2026
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Sec. 10.254. DISPOSITION OF PROPERTY NOT A MERGER OR CONVERSION; LIABILITY. (a) A disposition of all or part of the property of a domestic entity, regardless of whether the disposition requires the approval of the entity's owners or members, is not a merger or conversion for any purpose.

(b) Except as otherwise expressly provided by another statute, a person acquiring property described by this section may not be held responsible or liable for a liability or obligation of the transferring domestic entity that is not expressly assumed by the person.

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

Amended by:

Acts 2007, 80th Leg., R.S., Ch. 688 (H.B. 1737), Sec. 55, eff. September 1, 2007.

SUBCHAPTER G. BANKRUPTCY REORGANIZATION


Notes of Decisions
Cited in 20 cases (5 in the last 5 years), 2007–2025 · leading case: Tyco Valves & Controls, L.P. v. Colorado, 365 S.W.3d 750 (Tex. App. 2012).
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Tyco Valves & Controls, L.P. v. Colorado, 365 S.W.3d 750 (Tex. App. 2012). · cites it 4× “TEX. BUS. ORGS.CODE ANN. § 10.254(b) (Vernon 2011) (emphasis added).”
E-Quest Mgmt., L.L.C. & Odyssey OneSource, Inc. v. Robbie Shaw, 433 S.W.3d 18 (Tex. App. 2013). · cites it 3× “Tex. Bus. Orgs.Code Ann. § 10.254 (Vernon Supp.”
Ford, Bacon & Davis, L.L.C. v. Travelers Ins., 635 F.3d 734 (5th Cir. 2011). · cites it 2× “1, 2010)); see also Tex. Bus. Orgs.Code § 10.254 (replacing the old provision with similar language).”
Motor Components, LLC v. Devon Energy Corp., 338 S.W.3d 198 (Tex. App. 2011). · cites it 2× “422, 422-23 (amended 1987, 1991, 1993, & 1997; recodified 2003) (current version at Tex. Bus. Orgs.Code Ann. § 10.254 (West 2009)); Shapolsky v.”
In re 1701 Com., LLC, 511 B.R. 812 (Bankr. N.D. Tex. 2014). “Tex. Bus. Orgs.Code Ann. § 10.254 (West 2012).”
NuStar Energy, L.P., & Kaneb Mgmt. Co., L.L.C. v. Diamond Offshore Co., 402 S.W.3d 461 (Tex. App. 2013). “” Tex. Bus. Orgs.Code Ann. § 10.254 (West 2012) (emphasis added).”
Allied Home Mortg. Corp. v. Donovan, 830 F. Supp. 2d 223 (S.D. Tex. 2011). “422, 422-23) (amended 1987, 1991, 1993, and 1997, recodified 2002) (current version at Tex. Bus. Orgs.Code Ann. § 10.254 (West 2009)), citing Patin v.”
Orion Refining Corp. v. UOP, 259 S.W.3d 749 (Tex. App. 2007). “) (addressing implications of asset transfer); Tex. Bus. Org.Code Ann. § 10.254 (Vernon 2006) (“Disposition of Property Not a Merger or Conversion; Liability”).”
Sammi Mach. Co. Ltd. v. Jedadiah Mathews, Chelsea Mathews, Individually & as Next Friend for G.M. & J.M. Jr. & Robert Marines (Tex. App. 2019). · cites it 3× “See Tex. Bus. Orgs. Code Ann. § 10.254 (b) (West 2012); Moore v.”
Bill Moore v. Panini Am. Inc. (Tex. App. 2016). “See TEX. BUS. ORGS. CODE ANN. § 10.254 (West 2012) (formerly Tex.”
Lopez v. Stanley Black & Decker, 764 F. App'x 703 (10th Cir. 2019). “See Tex. Bus. Orgs. Code § 10.254(b) (Tex. 2007) 3 Mr.”
Northland Indus., Inc., D/B/A Magnum Fitness , Jhtna Mfg., L.L.C., & Johsnon Health Tech North Am., Inc. v. Gilbert Kouba, Individually & as Rep. of the Est. of Audrey Kouba, Karen Williams & Curtis Kouba (Tex. 2020). “The Asset-Purchase Agreement’s Limited Assumption of Liabilities Under the Uniform Commercial Code (UCC), as adopted by both Texas and Wisconsin, a warranty of merchantability is implied in contracts for the sale of goods if the seller is a merchant with respect to goods of the…”
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Tex. Bus. Orgs. Code § 10.254(b): 7 cases
Tyco Valves & Controls, L.P. v. Colorado, 365 S.W.3d 750 (Tex. App. 2012). “TEX. BUS. ORGS.CODE ANN. § 10.254(b) (Vernon 2011) (emphasis added).”
Lopez v. Stanley Black & Decker, 764 F. App'x 703 (10th Cir. 2019). “See Tex. Bus. Orgs. Code § 10.254(b) (Tex. 2007) 3 Mr.”
Sammi Mach. Co. Ltd. v. Jedadiah Mathews, Chelsea Mathews, Individually & as Next Friend for G.M. & J.M. Jr. & Robert Marines (Tex. App. 2019). “See Tex. Bus. Orgs. Code Ann. § 10.254 (b) (West 2012); Moore v.”
Northland Indus., Inc., D/B/A Magnum Fitness , Jhtna Mfg., L.L.C., & Johsnon Health Tech North Am., Inc. v. Gilbert Kouba, Individually & as Rep. of the Est. of Audrey Kouba, Karen Williams & Curtis Kouba (Tex. 2020). “The Asset-Purchase Agreement’s Limited Assumption of Liabilities Under the Uniform Commercial Code (UCC), as adopted by both Texas and Wisconsin, a warranty of merchantability is implied in contracts for the sale of goods if the seller is a merchant with respect to goods of the…”
UST-Mamiya Inc v. True Sports Inc (N.D. Tex. 2020).
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