Bill Text: CA SB1431 | 2017-2018 | Regular Session | Chaptered
Bill Title: Obligations: release.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-07-20 - Chaptered by Secretary of State. Chapter 157, Statutes of 2018. [SB1431 Detail]
Download: California-2017-SB1431-Chaptered.html
Senate Bill No. 1431 |
CHAPTER 157 |
An act to amend Sections 1541 and 1542 of the Civil Code, relating to obligations.
[
Approved by
Governor
July 20, 2018.
Filed with
Secretary of State
July 20, 2018.
]
LEGISLATIVE COUNSEL'S DIGEST
SB 1431, Morrell.
Obligations: release.
Under existing law, an obligation is a legal duty to do or not to do a certain thing and an obligation may be extinguished in various ways. An obligation is extinguished if a creditor releases a debtor from the obligation either upon new consideration or in writing, with or without new consideration. Under existing law, a general release from an obligation does not apply to claims that the creditor does not know or suspect to exist in his or her favor, as
specified, and that would have materially affected his or her settlement with the debtor.
This bill would clarify that the terms “creditor” and “debtor” as used in the above provisions include “releasing party” and “released party,” respectively. This bill would state that its changes are declaratory of existing law.