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HomeCommercial CodeDiv. 2Ch. 7§ 2720 Contract Cancellation Claims

§ 2720 Contract Cancellation Claims

Commercial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 2720 Contract Cancellation Claims

Key Takeaways

  • •If someone cancels a contract, they can still ask for money if the other person broke the rules before.
  • •Saying 'I cancel' doesn't mean 'I give up my right to complain about what you did wrong.'
  • •You can stop the contract and still want money for problems that already happened.

Example

You hire someone to fix your roof, but they do a bad job and leave holes. You tell them, 'The deal is off!'

Even though you canceled the contract, you can still ask them to pay for the damage they caused before you canceled.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 2720 Contract Cancellation Claims

Unless the contrary intention clearly appears, expressions of “cancellation” or “rescission” of the contract or the like shall not be construed as a renunciation or discharge of any claim in damages for an antecedent breach. (Enacted by Stats. 1963, Ch. 819.)

Last verified: January 23, 2026

Key Terms

cancellationrescissionrenunciationdischargeclaim in damagesantecedent breach

Related Statutes

  • § 2721 Fraud Remedies In Sales
  • § 10505 Lease Cancellation And Termination
  • § 2701 Collateral Contract Remedies
  • § 2702 Seller Rights For Insolvent Buyers
  • § 2703 Seller Remedies For Breach

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Commercial Code. Section 2720.
View Official Source