TX STATEPerformance Bond

Performance Bond in Texas Construction Contracts

2 opinions

Texas courts have addressed performance bond clauses across 2 appellate opinions, establishing precedent for when these provisions are enforceable and how they interact with other contractual terms.

The cases below are organized by outcome and significance. Flagship cases represent the most-cited opinions that have shaped how performance bond clauses are interpreted in Texas courts.

FLAGSHIP CASES

CA STATECalifornia Supreme Court
1999

Cates Construction, Inc. v. Talbot Partners

980 P.2d 407 • California Supreme Court • 1999Modified
Performance BondLiquidated DamagesFlow-Down

A surety is contractually liable under a performance bond for damages caused by a contractor's failure to promptly and faithfully perform, but tort remedies for breach of the implied covenant of good faith and fair dealing are unavailable in the surety bond context.

Cited 165 timesFLAGSHIP

ALL OPINIONS

2 opinions sorted by most cited

CASECITATIONOUTCOMECITES
Cates Construction, Inc. v. Talbot Partners

California Supreme Court

980 P.2d 407 (1999)modified165
Great American Insurance Company of New York v. Williamson County, Texas

Texas Court of Appeals, 3rd District (Austin)

 (2025)affirmed0

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