A Section 1542 waiver involves a party relinquishing their right to claims that are unknown or unsuspected at the time of the agreement. This waiver is often included in settlement agreements to ensure a comprehensive release of all potential claims, even those not currently evident.
Section 1542 Waiver. YOU UNDERSTAND THAT THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS. You acknowledge that you have read and understand Section 1542 of the California Civil Code, which reads as follows: A general release does not extend to claims which 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.
Section 1542 Waiver. Consultant understands and agrees that the Released Claims include not only claims presently known to Consultant, but also include all unknown or unanticipated claims, rights, demands, actions, obligations, liabilities, and causes of action of every kind and character that would otherwise come within the scope of the Released Claims as described in Section 2, above. Consultant understands that Consultant may hereafter discover facts different from what Consultant now believes to be true, which if known, could have materially affected this Agreement, but Consultant nevertheless waives any claims or rights based on different or additional facts. Consultant knowingly and voluntarily waives any and all rights or benefits that Consultant may now have, or in the future may have, under the terms of Section 1542 of the California Civil Code, which provides as follows: 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.
California Civil Code Section 1542 Waiver. Employee agrees that all rights under Section 1542 of the California Civil Code are expressly waived. That section provides: 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.
Section 1542 Waiver The Parties expressly agree that, upon the Effective Date, each will waive and release any and all provisions, rights, and benefits conferred either (a) by Section 1542 of the California Civil Code, or (b) by any law of any state, territory or country, or principle of common law, which is similar, comparable, or equivalent to Section 1542 of the California Civil Code, with respect to the claims and rights being released under the Parties’ mutual release. The Parties acknowledge that Section 1542 of the California Civil Code reads: 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. Whether a beneficiary of California law or otherwise, each Party acknowledges that such Party may hereafter discover facts other than or different from those that such Party knows or believes to be true with respect to the subject matter of the claims released, but nonetheless agrees expressly that, upon entry of the dismissal without prejudice contemplated by this mutual release, such Party shall have waived and fully, finally, and forever settled and released any known or unknown, suspected or unsuspected, asserted or unasserted, or contingent or non-contingent claim with respect to the claims released under this Settlement Agreement, whether or not concealed or hidden, and without regard to subsequent discovery or existence of such different or additional facts. This waiver shall be understood to include all such claims that each Party does not know of or suspect to exist in their favor at the time of this release and which, if known by such Party, might have affected their willingness to enter into the mutual release.
You warrant that you have read this Agreement, including this waiver of California Civil Code section 1542, and that you have consulted with or had the opportunity to consult with counsel of your choosing about whether to sign this Agreement and specifically about the waiver of section 1542, and that you understand this Agreement and the section 1542 waiver, and so you freely and knowingly enter into this Agreement.
Release of Unknown Claims and Civil Code Section 1542 Waiver. Employee understands that the foregoing release of claims is intended to be comprehensive in scope and to cover claims that Employee knows about and those Employee may not foresee or know about, in connection with the matters released. Therefore, Employee waives and relinquishes all rights and benefits Employee has under Section 1542 of the California Civil Code, or any similar statute or provision of any other state, which reads as follows: “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 related party.”
Section 1542 Waiver. In giving the release herein, which includes claims which may be unknown to you at present, you acknowledge that you have read and understand Section 1542 of the California Civil Code, which reads as follows: “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.” You hereby expressly waive and relinquish all rights and benefits under that section and any law of any other jurisdiction of similar effect with respect to your release of claims herein, including but not limited to your release of unknown claims.
Thus, notwithstanding the provisions of section 1542, and to implement a full and complete release and discharge of the Releasees, you expressly acknowledge this Agreement is intended to include in its effect, without limitation, all claims you do not know or suspect to exist in your favor at the time of signing this Agreement, and that this Agreement contemplates the extinguishment of any such claims. You warrant that you have read this Agreement, including this waiver of California Civil Code section 1542, and that you have consulted with or had the opportunity to consult with counsel of your choosing about whether to sign this Agreement and specifically about the waiver of section 1542, and that you understand this Agreement and the section 1542 waiver, and so you freely and knowingly enter into this Agreement. You further acknowledge that you later may discover facts different from or in addition to those you now know or believe to be true regarding the matters released or described in this Agreement, and even so you agree that the releases and agreements contained in this Agreement shall remain effective in all respects notwithstanding any later discovery of any different or additional facts. You expressly assume any and all risk of any mistake in connection with the true facts involved in the matters, disputes, or controversies released or described in this Agreement or with regard to any facts now unknown to you relating thereto.
Section 1542 Waiver. For the purpose of implementing a full and complete release, you expressly acknowledge that the release given in the Agreement is intended to include, without limitation, claims that you did not know or suspect to exist in your favor at the time of execution of the Agreement, regardless of whether the knowledge of such claims, or the facts upon which they might be based, would materially have affected the settlement in this matter, and that the consideration provided under this Agreement is also for the release of those claims and contemplates extinguishment of any such unknown claims. You expressly waive and relinquish all rights and benefits afforded under Section 1542 of the Civil Code of the State of California which states: “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.” Notwithstanding the provisions of Section 1542, and for the purpose of implementing a full and complete release, you expressly acknowledge that this Agreement is intended to include in its effect, without limitation, all claims that you know of, do not know or suspect to exist in your favor against the Group, or any of them, at the time of execution hereof, and that this Agreement contemplates the extinguishment of any such claims.
A Section 1542 waiver is a legal provision often included in settlement agreements and releases under California law. Section 1542 of the California Civil Code states that a general release does not extend to claims that the creditor does not know or suspect to exist in their favor at the time of executing the release, which would have materially affected their settlement with the debtor. By waiving Section 1542, parties agree to relinquish even those claims that are unknown at the time of the agreement, effectively broadening the scope of the release.
A Section 1542 waiver should be used when parties wish to ensure that the settlement resolves not only known disputes but also any potential unknown claims. It is particularly useful in comprehensive settlements where the intent is to avoid any further litigation or claims arising from the transaction or relationship being settled. This waiver is often critical in contexts where lingering or unforeseen issues might exist but are not currently apparent to either party.
When drafting a Section 1542 waiver, it is important to ensure the language clearly articulates the intent to waive both known and unknown claims. A waiver typically includes a citation of the statutory language of Section 1542 for clarity and legal certainty. An example of such a waiver might read:
“The parties expressly waive any and all rights and benefits conferred by Section 1542 of the California Civil Code, which states: ‘A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in their favor at the time of executing the release, which if known by them must have materially affected their settlement with the debtor or released party.’”
Section 1542 waivers are commonly found in various types of contracts, particularly those involving settlements and releases. They are frequently included in:
These waivers serve to provide clarity and finality to agreements, preventing subsequent disputes over matters not currently foreseeable.
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