Today's Law As Amended

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SB-1431 Obligations: release.(2017-2018)



SECTION 1.

 Section 1541 of the Civil Code is amended to read:

1541.
 An obligation is extinguished by a release therefrom given to the debtor or the released party by the creditor or releasing party, upon a new consideration, or in writing, with or without new consideration.

SEC. 2.

 Section 1542 of the Civil Code is amended to read:

1542.
 A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.
SEC. 3.
 The amendments to Sections 1541 and 1542 of the Civil Code made by this act are declaratory of existing law.