Common use of California Code Clause in Contracts

California Code. The Parties understand and agree that all rights under Section 1542 of the California Civil Code and any other similar statute are hereby expressly waived. Section 1542 of the California Civil Code reads as follows: “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.” This waiver of Section 1542 is an essential term of this Agreement without which the agreement would not have been reached.