Common use of Section 1542 Clause in Contracts

Section 1542. It is each party’s intention that the execution of this Agreement will forever bar every claim, demand, cause of action, charge and grievance against the other party and its affiliates, existing at any time prior to and through the date of execution of this Agreement. Because of each party’s intention, each party expressly waives any and all rights or benefits which such party may have under the provisions of California Civil Code Section 1542, which provides 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.” Each party further waives and relinquishes all rights and benefits such party may have under any other statutes or common law principles of similar effect that can be waived.