Recent Answers to Texas Law Questions
How to get my home equity after foreclosure
Real Estate
Property Deed
Texas
My home got foreclosed for 120 thousand and it's worth 250 thousand
Jerome L.
If your Texas home sold for more than what you owed, you may be entitled to what is called surplus or excess funds. These funds are held by the county or trustee after foreclosure. To claim them, you must file a petition for release of surplus funds with proof of ownership and sale details. An attorney can help confirm eligibility and make sure you recover the full amount before others claim it.
Is it necessary to conduct a copyright search before using a specific image for commercial purposes?
Intellectual Property
Copyright Search
Texas
I am a freelance graphic designer and I recently came across a striking image that I would like to incorporate into a client's commercial project. However, I want to ensure that I am not infringing on any copyright laws. I have heard about copyright searches, but I am unsure if they are necessary or if there are any potential legal consequences for using an image without conducting such a search. I want to make sure I am taking the necessary precautions to protect myself and my client from any legal issues.
Randy M.
When you’re preparing work for a client, the key issue isn’t whether you’ve run a formal copyright search, but whether you have the legal right to use the image. Copyright law automatically protects most images, so relying on the absence of a watermark or a registration record isn’t enough to keep you safe. Copyright Protection and Ownership Under U.S. law, copyright attaches the moment an original work is created and fixed in a tangible form (17 U.S.C. § 102). That means virtually every photo, illustration, or graphic you find online is already protected. Registration with the U.S. Copyright Office strengthens enforcement rights, but it isn’t required for protection. Likewise, the lack of a © symbol doesn’t mean an image is free to use. Because there’s no central database covering all copyrighted images, a formal copyright search isn’t practical or reliable in most cases. Even if you searched the Copyright Office’s records, you’d only be looking at registered works, which are a small fraction of what’s actually protected. Risks of Using Unlicensed Images If you incorporate an image without permission into a commercial project, you and your client could face serious consequences. Infringement can lead to cease-and-desist orders, statutory damages of $750 to $30,000 per work (and up to $150,000 for willful infringement) under 17 U.S.C. § 504(c), and potential liability for the copyright holder’s attorney’s fees. Courts generally view commercial use as disfavoring any “fair use” defense. Even if you didn’t intend to infringe, liability can still be imposed. Best Practices for Designers The best practice is to focus on obtaining images from sources where the licensing terms are clear and legally sound. For example: • Use reputable stock photo agencies such as Adobe Stock, Shutterstock, or Getty, where commercial licenses are explicit. • Choose Creative Commons images that allow commercial use (e.g., CC BY or CC0), but review license terms carefully. • Confirm public domain status when applicable, such as U.S. federal government works. • Contact creators directly for written permission if you want to use their work. • Keep copies of receipts, license agreements, or permission letters so you can show proof of rights if challenged. Reverse image search tools like Google Images or TinEye can be useful to trace the origin of an image and identify whether it’s sold or licensed by a third party. However, this is a step in due diligence, not a substitute for obtaining rights. Professional Responsibility As a freelance designer, your contracts may hold you responsible for ensuring that the materials you deliver don’t infringe anyone else’s rights. Delivering work that exposes your client to infringement claims can damage your reputation and your client relationship. The safest practice is to assume that any image you didn’t create yourself is protected until you confirm otherwise and secure the proper license.
Can a custodial agreement be modified if the non-custodial parent is consistently violating the terms?
Child Custody
Custodial Agreement
Texas
I am the custodial parent of my child, and the non-custodial parent has been consistently violating the terms of our custodial agreement by failing to show up for scheduled visitations, not providing financial support, and disregarding important decisions regarding our child's education and healthcare. I want to know if it is possible to modify the custodial agreement to ensure that the non-custodial parent is held accountable for their actions and to protect the best interests of our child.
Sarah T.
If the agreement is an out of court agreement, a petition can be filed to obtain a custody order. Once an order is obtained, if a party violates the order, an enforcement action can be filed against them. If the agreement is a court order, it should contain language that would allow for enforcement. Typically, there must be a change in circumstances to request a court order be modified.
Is a stock subscription agreement legally binding if it was signed electronically?
Enforcement
Stock Subscription Agreement
Texas
I recently entered into a stock subscription agreement with a company, which involved me purchasing a certain number of shares. The agreement was signed electronically using an online platform. However, I am now unsure if this electronic signature is legally binding and if the agreement is enforceable. I would like to seek legal advice on the validity of the agreement and the enforceability of the terms.
Darryl S.
Electronic signatures are generally legally valid and enforceable in most jurisdictions, but the specific enforceability of your stock subscription agreement depends on several factors: a) did you have an intent to sign b) were securities laws followed in this offering. You'll want to engage a litigator with experience in these topics, esp. securities laws.
Are there any legal implications I should be aware of before signing an event space rental agreement?
Contracts
Event Space Rental Agreement
Texas
I am in the process of renting an event space for a corporate event, and I have received a rental agreement from the venue. However, I am not well-versed in legal matters and want to ensure I am not exposing myself to any unnecessary risks or liabilities. I would like to consult a lawyer to understand if there are any specific clauses or legal implications I should be aware of before signing the agreement, such as liability waivers, cancellation policies, or any hidden fees that could potentially affect my event or financial obligations.
Randy M.
Here’s how you should think about an event space rental agreement before signing. The legal implications vary depending on the venue’s contract and the state where the event is held, but the following are the main areas that tend to carry the most risk. Liability and Insurance Most agreements include indemnification clauses that shift responsibility for injuries or property damage onto you as the renter. This can mean that if a guest slips on a spill or equipment is damaged, you may be required to cover the venue’s legal costs, even if the venue was partly at fault. Look for mutual indemnification, where the venue accepts responsibility for its own negligence. Venues typically require you to carry general liability insurance and provide proof of coverage, with the venue named as an additional insured. Policy limits are often set at $1 million or more. If you’ll be serving alcohol, check whether liquor liability coverage is required. Make sure the agreement doesn’t attempt to make you liable for “ordinary wear and tear,” which isn’t normally compensable under contract law. Cancellation and Force Majeure Cancellation provisions are often strict. Many venues use a tiered refund system, where the closer you get to the event date, the less you’ll recover. Deposits are usually nonrefundable. You’ll also want clarity on what happens if the venue cancels—at a minimum, you should receive a full refund of amounts already paid. Force majeure clauses excuse both parties if unforeseeable events like government shutdowns, natural disasters, or pandemics prevent the event. Courts interpret these clauses narrowly, so if you want protection for specific risks like labor strikes or public health orders, they should be spelled out in the contract. Financial Terms Base rental fees are often only part of the total cost. Agreements may include cleaning fees, mandatory service charges (often 18 to 25 percent on catering), overtime charges, corkage or cake-cutting fees, or penalties for exceeding capacity. Some contracts classify service charges as administrative fees rather than gratuities, which can affect both budgeting and compliance with state wage laws. Payment schedules should be clear about when deposits are due, when final balances must be paid, and what happens if you miss a deadline. Operational Restrictions Most venues impose rules on how the space can be used. These may include restrictions on decorations (no nails, no open flames), amplified sound, alcohol service, or access times for setup and breakdown. If you want to bring in your own caterer, florist, or DJ, confirm whether outside vendors are allowed or whether you’ll be charged extra for not using preferred providers. Many venues require proof of insurance from outside vendors, which you’ll need to coordinate in advance. Legal Enforceability of Waivers Liability waivers included in venue agreements aren’t enforceable in the same way in every state. For example, New York generally won’t enforce waivers that attempt to release a venue from its own negligence, while many other states will uphold them unless gross negligence or intentional misconduct is involved. This is one area where a lawyer familiar with local law can tell you how much weight the waiver really carries. Practical Steps Before Signing Have your business insurance agent review the venue’s insurance requirements to confirm your policy covers rented event spaces. If not, you can purchase event-specific coverage. Ask the venue to provide a detailed cost estimate including all fees so there are no surprises. Finally, before you commit to an event space rental agreement, make sure the terms don’t leave you with unexpected liability or costs. The experienced business attorneys on Contracts Counsel are available to review your contract, flag risks, and negotiate fairer terms so you can focus on hosting a successful event with confidence.
Is my website required to comply with GDPR regulations?
Privacy
GDPR Compliance
Texas
I recently launched a small e-commerce website that sells products to customers in the European Union. While I am based in the United States, I have noticed that a significant portion of my customers are from EU countries. I have heard about the General Data Protection Regulation (GDPR) and its requirements for businesses handling personal data of EU citizens, but I'm not sure if my website needs to comply with these regulations. Can you clarify if my website falls under the scope of GDPR and what steps I need to take to ensure compliance?
Randy M.
Yes. If you sell to people in the European Union, the GDPR applies to you. It doesn’t matter where your business is based. Under Article 3, the law extends beyond Europe to cover any company that offers products or services to EU residents or tracks their behavior online. So if you accept orders from the EU, you're legally required to follow GDPR rules. The GDPR lays out key principles in Article 5. In simple terms: • You must have a lawful basis before collecting personal data (lawfulness). • Data must be collected and used fairly and transparently (fairness and transparency). • Only gather the minimum data necessary and for clear, legitimate purposes (purpose limitation and data minimisation). • Keep personal data accurate and update or correct it when needed (accuracy). • Don’t keep data longer than required for the stated purpose (storage limitation). • Protect data with appropriate technical and organizational safeguards (integrity and confidentiality). • Be able to show regulators that you comply with all of these rules (accountability). You also need to be able to prove you're doing all this if a regulator asks. When Are You Allowed to Use Customer Data? For things like shipping an order or taking payment, you’re covered by what's called the “contract” basis under Article 6(1)(b). You need info like names, addresses, and payment details to complete a sale. That’s allowed. For email marketing, things are stricter. Consent is usually required. That means a clear opt-in, like an unchecked box the customer has to actively click. Some EU countries allow limited “soft opt-in” for existing customers, but the rules vary by country. If you’re unsure, it’s safest to get clear consent before emailing EU customers with promotions. What Rights Do Customers Have Over Their Data? Articles 15–21 give EU customers a lot of control. They can: • Ask what data you have on them • Correct wrong info • Ask you to delete their data (in certain cases) • Tell you to stop using it • Opt out of marketing • Ask you to send their data to another company You need systems in place to respond to these requests quickly and efficiently. What About Cookies? The EU’s top court (in the Planet49 case) made it clear: you can’t assume consent for tracking cookies. That means: • No pre-checked boxes • No vague “we use cookies” banners • You must let users actively choose which types of cookies to allow • You need to record and prove that consent was given Your cookie banner should be easy to use and offer equal choices for accepting or rejecting cookies. How to Keep Customer Data Secure You’re expected to take technical and organizational steps to protect people’s personal data. That includes things like: • Using SSL/TLS encryption • Restricting access to databases • Having solid contracts with vendors who handle customer data If there’s a data breach, Article 33 says you must tell the relevant EU authority within 72 hours if the breach could put someone’s rights at risk. If it’s a serious risk to individuals, Article 34 says you also need to inform the affected customers. What If You Use Outside Vendors? If you work with third parties such as payment processors, email services, or cloud providers, you’re responsible for what they do with customer data. The GDPR requires you to sign Data Processing Agreements (DPAs) with them. These agreements must cover: • How they protect the data • Their legal obligations • How they’ll help you stay compliant You can’t skip this part. It’s not optional. Do You Need an EU Representative? If you regularly sell to EU customers, the answer is yes. Article 27 requires most non-EU businesses to appoint an official representative inside the EU. This rep acts as your point of contact for EU regulators and customers. You only get an exemption if: • You rarely process EU data • It’s low-risk • It doesn’t involve sensitive data But if you're actively targeting or shipping to EU customers, that exemption likely won’t apply. What Happens If You Don’t Comply? Regulators can fine you up to €20 million or 4% of your global annual revenue, whichever is higher. That said, small businesses aren’t usually hit with huge fines right away. Most EU regulators aim to help companies comply, especially if you’re clearly making an effort. But ignoring GDPR isn’t a good strategy. Being able to show you’ve taken real steps toward compliance is your best protection. Attorneys on Contracts Counsel are ready to help with GDPR compliance, including privacy policies, vendor contracts, and other legal obligations tailored to your business needs.