Court Opinions

State Laws

US Code

US Constitution

California Commercial Code Section 1202

Legal Research Home > California Lawyer > Commercial Code > California Commercial Code Section 1202

(a) Subject to subdivision (f), a person has "notice" of a
fact if the person:
   (1) has actual knowledge of it;
   (2) has received a notice or notification of it; or
   (3) from all the facts and circumstances known to the person at
the time in question, has reason to know that it exists.
   (b) "Knowledge" means actual knowledge. "Knows" has a
corresponding meaning.
   (c) "Discover," "learn," or words of similar import refer to
knowledge rather than to reason to know.
   (d) A person "notifies" or "gives" a notice or notification to
another person by taking such steps as may be reasonably required to
inform the other person in ordinary course, whether or not the other
person actually comes to know of it.
   (e) Subject to subdivision (f), a person "receives" a notice or
notification when:
   (1) it comes to that person's attention; or
   (2) it is duly delivered in a form reasonable under the
circumstances at the place of business through which the contract was
made or at another location held out by that person as the place for
receipt of such communications.
   (f) Notice, knowledge, or a notice or notification received by an
organization is effective for a particular transaction from the time
it is brought to the attention of the individual conducting that
transaction and, in any event, from the time it would have been
brought to the individual's attention if the organization had
exercised due diligence. An organization exercises due diligence if
it maintains reasonable routines for communicating significant
information to the person conducting the transaction and there is
reasonable compliance with the routines. Due diligence does not
require an individual acting for the organization to communicate
information unless the communication is part of the individual's
regular duties or the individual has reason to know of the
transaction and that the transaction would be materially affected by
the information.

Last modified: January 12, 2009