US · contractsSources checked
Can a California contract exclude liability for fraud?
No. Under section 1668 of California's Civil Code, all contracts which have for their object, directly or indirectly, to exempt anyone from responsibility for their 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.
Sources
- California Civil Code, section 1668 (Unlawful Contracts)leginfo.legislature.ca.gov (California Legislative Information) · checked 17 August 2026 · Enacted 1872.
Related questions
- Does it matter if the exclusion is worded indirectly?
- No. Section 1668 reaches contracts whose object is directly or indirectly to exempt someone from that responsibility.
- Does it cover breaking the law carelessly rather than deliberately?
- Section 1668 refers to violation of law, whether willful or negligent, so it is not limited to deliberate breaches.
What this answer does not cover
- This is California law. Other states treat exclusion clauses differently.
- This page covers section 1668 only. Other limits on what a contract can exclude sit elsewhere and are not covered here.
