The command \' becomes \EU1-cmd\' \EU1\' and then \EU1-cmd checks if the combination
\\EU1\'-.
is defined; the control sequence has \EU1\'-. as name and can be checked by
\expandafter\show\csname\string\EU1\string\'-.\endcsname
which gives
> \\EU1\'-.=macro:
->\TIPAaccent {\textdotacute }.
Now the problem follows, because \TIPAaccent wants two arguments, and it finds \end which is surely not a good token for it.
Here's an example:
\documentclass{article}
\usepackage{fontspec}
\setmainfont{Gentium}
\begin{document}
\'.e
\end{document}
Gentium is needed because Latin Modern doesn't have the required glyph.

In conclusion, \TeX\'. shows a bad usage of the backslash after \TeX.
If you need \'. for demonstration purposes, you can undeclare the composite using the command I suggested in https://tex.stackexchange.com/a/58115/4427
\documentclass{article}
\usepackage{fontspec}
\setmainfont{CMU Serif}
\providecommand*\UndeclareTextComposite[3]{%
\expandafter\let\csname\expandafter\string\csname
#2\endcsname\string#1-#3\endcsname\relax}
\UndeclareTextComposite{\'}{EU1}{.}
\begin{document}
`\TeX\'.
\end{document}
The placement of the accent isn't the same as with cmr10; this depends on the fonts.

\'is not a valid control sequence there. – Johannes_B Oct 04 '14 at 06:54\TeX\'. \vfill\eject\byeand compile it usingpdftex(notpdflatex). – Johannes_B Oct 04 '14 at 07:00fontspecand runpdflatexand see the result yourself. – vafa Oct 04 '14 at 07:04fontspechas some kind of failsafe, as it won't put together characters but uses the unicode ones provided by the font. – Johannes_B Oct 04 '14 at 07:04