Title 4 - UNLAWFUL CONTRACTS

California Civil Code — §§ 1667-1670.15

Sections (10)

That is not lawful which is:

1. Contrary to an express provision of law;

2. Contrary to the policy of express law, though not expressly prohibited; or,

3. Otherwise contrary to good morals.

All contracts which have for their object, directly or indirectly, to exempt any one from responsibility for his own fraud, or willful injury to the person or property of another, or violation of law, whether willful or negligent, are against the policy of the law.

Added by Stats. 1977, Ch. 198.

Every contract in restraint of the marriage of any person, other than a minor, is void.

Added by Stats. 1994, 1st Ex. Sess., Ch. 54, Sec. 1. Effective November 30, 1994.

(a)Any contract for the payment of money or other consideration to a minor who has been alleged to be the victim of an unlawful sex act, or to his or her legal representative, by the alleged perpetrator of that unlawful sex act, or his or her legal representative, entered into on or after the time of the alleged unlawful sex act, and providing for any payments to be made more than one year after the date of the execution of the contract, is void as contrary to public policy. A district attorney may bring an action or intervene in any

action to enjoin enforcement of any contract which is in violation of this section.

(b)This section does not apply after the date of the final judgment in a criminal case against the alleged perpetrator for the unlawful sex act described in subdivision (a).
(c)This section does not apply to a contract for the payment of money or other consideration made from a nonrevocable trust established for the benefit of the minor if the alleged perpetrator has no direct or indirect access to, or control over, the trust.
(d)This section does not apply to an alleged perpetrator of an unlawful sex act against a minor to the extent he or she agrees to pay, or is required by court order to pay, child support for that minor upon a dissolution or legal separation.
(e)For purposes of this section, “unlawful sex act,” means a felony sex offense committed against a minor.
(f)Notwithstanding subdivision (a), any contract declared void as contrary to public policy under this section may still be enforced by a district attorney against the payor, and the proceeds thereof shall be deposited in the State Children’s Trust Fund pursuant to Section 18969 of the Welfare and Institutions Code.

Added by Stats. 1994, Ch. 869, Sec. 1. Effective January 1, 1995.

A contract for the payment of money or other consideration in violation of Section 132.5 of the Penal Code is void as contrary to public policy. The Attorney General or the district attorney of the county in which a violation of Section 132.5 of the Penal Code occurs may bring a civil action, or intervene in any civil action, to enjoin the enforcement of a contract that violates that section.

Added by Stats. 1978, Ch. 1374.

Any dispute arising from a construction contract with a public agency, which contract contains a provision that one party to the contract or one party’s agent or employee shall decide any disputes arising under that contract, shall be resolved by submitting the dispute to independent arbitration, if mutually agreeable, otherwise by litigation in a court of competent jurisdiction.

Added by Stats. 2017, Ch. 761, Sec. 1. (AB 1491) Effective January 1, 2018.

(a)(1) Except as provided in paragraph (2), a contract entered into on or after January 1, 2018, to transfer ownership of a dog or cat in which ownership is contingent upon the making of payments over a period of time subsequent to the transfer of possession of the dog or cat is void as against public policy.
(2)Paragraph (1) shall not apply to payments to repay an unsecured loan for the

purchase of the dog or cat.

(b)A contract entered into on or after January 1, 2018, for the lease of a dog or cat that provides for or offers the option of transferring ownership of the dog or cat at the end of the lease term is void as against public policy.
(c)In addition to any other remedies provided by law, the consumer taking possession of a dog or cat transferred under a contract described in paragraph (1) of subdivision (a) or in subdivision (b) shall be deemed the owner of the dog or cat and shall also be entitled to the return of all amounts the consumer paid under the contract.

Amended by Stats. 2019, Ch. 497, Sec. 25. (AB 991) Effective January 1, 2020.

Notwithstanding any other law, a provision in a contract or settlement agreement entered into on or after January 1, 2019, that waives a party’s right to testify in an administrative, legislative, or judicial proceeding concerning alleged criminal conduct or alleged sexual harassment on the part of the other party to the contract or settlement agreement, or on the part of the agents or employees of the other party, when the party has been required or requested to attend the proceeding pursuant to a court order, subpoena, or written request from an administrative agency or the Legislature, is void and unenforceable.

Added by Stats. 2023, Ch. 577, Sec. 2. (AB 1345) Effective January 1, 2024.

(a)For purposes of this section, the following definitions apply:
(1)“Exclusive listing agreement” means any contract or agreement providing an exclusive right to list or sell residential real property, including:
(A)An exclusive agreement as described in Section 10018.15 or 10018.16 of the Business and Professions Code.
(B)A contract or agreement to enter into any such agreement or arrangement.
(2)“Single-family residential property” means one of the following:
(A)Real property

improved with one to four dwelling units.

(B)A unit in a residential stock cooperative, condominium, or planned unit development.
(C)A mobilehome or manufactured home when offered for sale or sold through a real estate licensee pursuant to Section 10131.6 of the Business and Professions Code.
(D)A qualified ownership interest in real property subject to an agreement providing the owner the right to occupy one to four dwelling units on that property.
(b)(1) It is unlawful for an exclusive listing agreement regarding single-family residential property to last longer than 24 months from the date the agreement was made. This paragraph shall not apply to exclusive listing agreements entered into between a real estate broker and a

corporation, limited liability company, or partnership.

(2)No exclusive listing agreement shall renew automatically, and any renewal of an exclusive listing agreement shall be in writing and be dated and signed by all parties to the agreement. It is unlawful for a renewal of an exclusive listing agreement subject to paragraph (1) to last longer than 12 months from the date the renewal was made.
(c)It is unlawful to present for recording or filing, or otherwise attempt to record or file, with a county recorder an exclusive listing agreement of any duration or any memoranda or notice of such an agreement.
(d)It is unlawful to enforce or attempt to enforce an exclusive listing agreement that is made, or that is presented for recording or filing with a county recorder, in violation of this section.
(e)(1) An exclusive listing agreement that is made, or that is presented for recording or filing with a county recorder, in violation of this section is void and unenforceable. A homeowner who entered into any such agreement may retain any consideration received thereunder.
(2)A violation of this section constitutes a violation under Section 1770.
(3)Any person licensed pursuant to Division 4 (commencing with Section 10000) of the Business and Professions Code who violates any provision of this section shall be deemed to have violated that person’s licensing law.

Added by Stats. 2025, Ch. 350, Sec. 1. (SB 82) Effective January 1, 2026.

(a)As used in this section, the following definitions shall apply:
(1)“Consumer” has the same meaning as defined in subdivision (c) of Section 302 of the Business and Professions Code.
(2)“Consumer use agreement” means a contract between a person and a consumer that the consumer enters into in order to use, receive, or otherwise enjoy a good, service, money, or credit.
(3)“Person” has the same meaning as defined in subdivision (d) of Section 302 of the Business and Professions Code.
(b)Dispute resolution terms and conditions of a consumer use agreement shall be limited to the use, payment, or provision of the good, service, money, or credit provided by that consumer use agreement.
(c)A waiver of the provisions of this section is contrary to public policy and void and unenforceable.
(d)This section shall be liberally construed for the purpose of protecting consumers.
(e)The duties and obligations imposed by this section are cumulative with duties or obligations imposed under any other law, shall not be construed to relieve any party from any duties or obligations imposed under any other law, and do not limit any rights or remedies under any other law.