Statute · California Commercial Code
Cal. Com. Code § 1204 — General Definitions and Principles of Interpretation
Cal. Com. Code § 1204
- Type
- Statute
- Source
- California Commercial Code
- Jurisdiction
- California
- Date
- 2024-01-01
- Current through
- Nov 2, 2026 (California Legislative Counsel)
Except as otherwise provided in Divisions 3, 4, 5, 6, and 12, a person gives value for rights if the person acquires them:
Citator
Cal. Com. Code § 1204 — General Definitions and Principles of Interpretation is in force in the current edition of the Code, and nothing recorded condemns it.
Except as otherwise provided in Divisions 3, 4, 5, 6, and 12, a person gives value for rights if the person acquires them:
(1) in return for a binding commitment to extend credit or for the extension of immediately available credit, whether or not drawn upon and whether or not a chargeback is provided for in the event of difficulties in collection;
(2) as security for, or in total or partial satisfaction of, a preexisting claim;
(3) by accepting delivery under a preexisting contract for purchase; or
(4) in return for any consideration sufficient to support a simple contract.