CA SB1431

Amends Civil Code Section 1541 to clarify that the terms "creditor" and "debtor" include "releasing party" and "released party" respectively in the context of releasing obligations.

Amends Civil Code Section 1542 to use the same terminology clarifications, specifying that a general release does not extend to claims unknown or unsuspected by the releasing party that would have materially affected settlement.

Declares that these amendments are clarifications of existing law rather than new legal changes.

Approved by the Governor on July 20, 2018.