SECTION 2-1104. PART SUPPLEMENTED BY OTHER LAW.
(a) Unless displaced by a provision of this [part], the principles of law and equity supplement this [part].
(b) This [part] does not limit any right of a person to waive, release, disclaim, or
(a) Unless displaced by a provision of this [part], the principles of law and equity supplement this [part].
(b) This [part] does not limit any right of a person to waive, release, disclaim, or
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renounce an interest in or power over property under a law other than this [part].
Comment
The supplementation of the provisions of the Act by the principles of law and equity in Section 2-1104(a) is important because the Act is not a complete statement of the law relating to disclaimers. For example, Section 2-1105(b) permits a trustee to disclaim, yet the disclaiming trustee must still adhere to all applicable fiduciary duties. See Restatement (Third) of Trusts § 86 Reporter’s Notes to cmt. f. Similarly, the provisions of Section 2-1113 on bars to disclaiming are subject to supplementation by equitable principles. See Badouh v. Hale, 22 S.W.3d 392 (Tex. 2000) (invalidating a disclaimer of an expectancy as contrary to equity, on the ground that the putative disclaimant had earlier pledged it to a third party).
Not only are the provisions of the Act supplemented by the principles of law and equity, but under Section 2-1104(b) the provisions of the Act do not preempt other law that creates the right to reject an interest in or power over property. The growth of the law would be unduly restricted were the provisions of the Act completely to displace other law.
Historical Note. This Comment was added in 2010.
Comment
The supplementation of the provisions of the Act by the principles of law and equity in Section 2-1104(a) is important because the Act is not a complete statement of the law relating to disclaimers. For example, Section 2-1105(b) permits a trustee to disclaim, yet the disclaiming trustee must still adhere to all applicable fiduciary duties. See Restatement (Third) of Trusts § 86 Reporter’s Notes to cmt. f. Similarly, the provisions of Section 2-1113 on bars to disclaiming are subject to supplementation by equitable principles. See Badouh v. Hale, 22 S.W.3d 392 (Tex. 2000) (invalidating a disclaimer of an expectancy as contrary to equity, on the ground that the putative disclaimant had earlier pledged it to a third party).
Not only are the provisions of the Act supplemented by the principles of law and equity, but under Section 2-1104(b) the provisions of the Act do not preempt other law that creates the right to reject an interest in or power over property. The growth of the law would be unduly restricted were the provisions of the Act completely to displace other law.
Historical Note. This Comment was added in 2010.
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