An obligation is extinguished by a release therefrom given to the debtor or the released party by the creditor or releasing party, upon a new consideration, or in writing, with or without new consideration.
Extinction of ObligationsRelease
Section § 1541
This law explains that a debt or obligation can be cancelled if the creditor formally releases the debtor from it. This can happen if there’s a new agreement or simply if it's put in writing, and the release can occur even if no new benefit or compensation is given in return.
obligation extinguishment debt cancellation creditor release
Section § 1542
This law means that when someone signs a general release, they are not giving up their right to bring up claims they didn't know about or suspect at the time of signing. If they had known about these claims, it might have changed the outcome of their settlement with the other party.
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.
general release unknown claims releasing party
Section § 1542.1
This law says that if a healthcare provider, as defined by a specific section, gets legal help from the state, like the Attorney General, for defense in a claim or lawsuit, they can't turn around and sue the state or its workers about the way the defense was handled.
Notwithstanding Section 1542, a provider of health care, as defined in Section 56.05, or its officers, employees, agents, or subcontractors, shall release the state and its officers, employees, and agents, from any claim arising from the defense of the provider of health care by the Attorney General, or other legal counsel provided by the state pursuant to Section 12511.5 of the Government Code.
healthcare provider legal defense Attorney General
Section § 1543
If you let one person off the hook for a shared debt, it doesn't mean the others don't still owe money. However, if the person released was only a guarantor, it's different. The remaining debtors can still ask the released person to pay their share unless specific rules from another law apply.
A release of one of two or more joint debtors does not extinguish the obligations of any of the others, unless they are mere guarantors; nor does it affect their right to contribution from him or her, except as provided in Section 877 of the Code of Civil Procedure.
joint debtors release obligations
