Legal Question in Business Law in Pennsylvania

General Mutual Release

''A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.''

The above statement is from Section 1542 of the Civil Code of the State of California and I would like to find out if a similar law exists in Pennsylvania, so that I can add a specific waiver for that law to a settlement contract. If you happen to know the Section to look up that would be very helpful. Thank you.


Asked on 6/11/02, 3:09 pm

1 Answer from Attorneys
Matthew Nahrgang Nahrgang & Associates, P.C.

Re: General Mutual Release

In Pa., a release is based upon the law of contracts. The general releases I use include all claims whether known or unknown. That, of course, does not include a release obtained through fraud. If the party being released makes a material misrepresentation of fact which the releasing party relies on to his/her detriment, it is possible to void the release.

I trust this has been helpful, but feel free to call or e-mail on a free initial basis.

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Answered on 6/13/02, 11:11 am


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