Section § 1549

Explanation

A contract is simply an agreement where people promise to either do something or refrain from doing something.

A contract is an agreement to do or not to do a certain thing.

Section § 1550

Explanation

For a contract to be valid, four things need to be in place: everyone involved must legally be able to make a contract, they all must agree to it, the reason for the contract has to be legal, and there has to be something of value exchanged.

It is essential to the existence of a contract that there should be:
1. Parties capable of contracting;
2. Their consent;
3. A lawful object; and,
4. A sufficient cause or consideration.

Section § 1550.5

Explanation

This section highlights that California has legalized and regulated marijuana for both medical and recreational use. The Compassionate Use Act allowed medical marijuana, while Proposition 64 legalized adult recreational use. The state has created a framework to license and regulate marijuana-related activities. As long as businesses follow state and local laws, their cannabis operations are considered lawful, are not immoral, and are not against public policy. This stands notwithstanding any federal law or other state provisions.

(a)CA Civil Law Code § 1550.5(a) The Legislature finds and declares all of the following:
(1)CA Civil Law Code § 1550.5(a)(1) The Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 5, 1996, statewide general election, authorized the use of marijuana for medical purposes in this state.
(2)CA Civil Law Code § 1550.5(a)(2) The Legislature passed the Medical Cannabis Regulation and Safety Act, formerly Chapter 3.5 (commencing with Section 19300) of Division 8 of the Business and Professions Code, to regulate and license medical cannabis in the state.
(3)CA Civil Law Code § 1550.5(a)(3) The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure enacted by the approval of Proposition 64 at the November 8, 2016, statewide general election, authorized the consumption of nonmedical marijuana by persons over 21 years of age and provided for the licensure and regulation of certain commercial nonmedical marijuana activities in this state.
(4)CA Civil Law Code § 1550.5(a)(4) The Legislature passed the Medicinal and Adult-Use Cannabis Regulation and Safety Act (Division 10 (commencing with Section 26000) of the Business and Professions Code) to consolidate the licensure and regulation of certain commercial activities with respect to medicinal cannabis and nonmedical marijuana, now known as adult-use cannabis.
(b)CA Civil Law Code § 1550.5(b) Notwithstanding any law, including, but not limited to, Sections 1550, 1667, and 1668 and federal law, commercial activity relating to medicinal cannabis or adult-use cannabis conducted in compliance with California law and any applicable local standards, requirements, and regulations shall be deemed to be all of the following:
(1)CA Civil Law Code § 1550.5(b)(1) A lawful object of a contract.
(2)CA Civil Law Code § 1550.5(b)(2) Not contrary to, an express provision of law, any policy of express law, or good morals.
(3)CA Civil Law Code § 1550.5(b)(3) Not against public policy.