Tex Mex shoot out meaning

A Tex Mex shoot out is a contractual buy–sell mechanism used to break deadlock in 50:50 joint ventures and shareholders’ agreements. It is a hybrid of a Texas shoot out (sealed bids to buy) and a Mexican shoot out (sealed offers to sell). Typically, each shareholder submits sealed figures for both a buy price and a sell price; the clause then selects the outcome (for example, the highest buy bid or the lowest sell offer), and compels a transfer of shares on those terms. The expression is market shorthand, not defined in legislation or case law. Its operation is purely a matter of contract drafting, and variants are common (including requirements for deposits, financing evidence, timetable, default consequences and tie‑break rules). Usage and enforceability are broadly consistent across England & Wales, Scotland, Northern Ireland and Ireland, subject to general rules on contractual certainty, penalties, share transfer restrictions and any regulatory consents. Practically, a Tex Mex shoot out can resolve stalemate quickly but may favour the better-funded party. It is often listed as a last‑resort deadlock resolution step alongside Russian roulette or Texas shoot out mechanisms.