§ 3117 Separate Agreement Modification

Commercial Code·California

AI SummaryVerified

Key Takeaways

•If two people make a deal about paying money, they can change or cancel that deal later if they both agree.
•The change or cancellation must be part of the same deal or rely on the original agreement.
•If they change the deal, the new agreement can be used as a reason not to pay the original amount.

Example

You borrow $100 from a friend and promise to pay it back in a month. Later, your friend says you can pay back $80 instead, and you both agree.

The new agreement to pay $80 changes the original deal. If your friend later asks for the full $100, you can say no because you both agreed to the new amount.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 3117 Separate Agreement Modification

Subject to applicable law regarding exclusion of proof of contemporaneous or previous agreements, the obligation of a party to an instrument to pay the instrument may be modified, supplemented, or nullified by a separate agreement of the obligor and a person entitled to enforce the instrument, if the instrument is issued or the obligation is incurred in reliance on the agreement or as part of the same transaction giving rise to the agreement. To the extent an obligation is modified, supplemented, or nullified by an agreement under this section, the agreement is a defense to the obligation. (Repealed and added by Stats. 1992, Ch. 914, Sec. 6. Effective January 1, 1993.)

Last verified: January 23, 2026

Key Terms

obligation instrument modified supplemented nullified separate agreement defense

References

Official text at leginfo.legislature.ca.gov
California Legislature. Commercial Code. Section 3117.

§ 3117 Separate Agreement Modification

Commercial Code·California

AI SummaryVerified

§ 3117 Separate Agreement Modification

Key Takeaways

•If two people make a deal about paying money, they can change or cancel that deal later if they both agree.
•The change or cancellation must be part of the same deal or rely on the original agreement.
•If they change the deal, the new agreement can be used as a reason not to pay the original amount.

Example

You borrow $100 from a friend and promise to pay it back in a month. Later, your friend says you can pay back $80 instead, and you both agree.

The new agreement to pay $80 changes the original deal. If your friend later asks for the full $100, you can say no because you both agreed to the new amount.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 3117 Separate Agreement Modification

Last verified: January 23, 2026

Key Terms

obligation instrument modified supplemented nullified separate agreement defense

References

Official text at leginfo.legislature.ca.gov
California Legislature. Commercial Code. Section 3117.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References