§ 1542 Unknown Claims Exclusion

This law says a simple release (like signing away legal claims) does not cover hidden problems you didn't know about that could have changed the deal.

Key Takeaways

•A release only covers what you actually knew about at the time you signed.
•If there's a hidden claim you didn't know about, you can still bring it up later.
•The hidden claim must be something that would have changed the amount or terms of your settlement if you had known about it.

Example

You sign a paper to settle a car accident claim with the other driver, but later you discover you had a hidden injury you didn't know about.

Because you didn't know about the injury when you signed, this law lets you still sue for that injury even though you signed a release.

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. (Amended by Stats. 2018, Ch. 157, Sec. 2. (SB 1431) Effective January 1, 2019.)

This law says a simple release (like signing away legal claims) does not cover hidden problems you didn't know about that could have changed the deal.

Key Takeaways

•A release only covers what you actually knew about at the time you signed.
•If there's a hidden claim you didn't know about, you can still bring it up later.
•The hidden claim must be something that would have changed the amount or terms of your settlement if you had known about it.

Example

You sign a paper to settle a car accident claim with the other driver, but later you discover you had a hidden injury you didn't know about.

Because you didn't know about the injury when you signed, this law lets you still sue for that injury even though you signed a release.

Key Takeaways

Example

Key Terms

References

§ 1542 Unknown Claims Exclusion

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References