Contracts & ExecutionQuestion 528 of 1632
A subcontractor signs a CONDITIONAL waiver and release on progress payment under Civil Code §8132 in exchange for a check that later bounces. What is the legal effect on the waiver?
a.The waiver is fully enforceable because it was signed in writing
b.The waiver does not become effective until the check is actually honored by the bank
c.The waiver is automatically converted to an unconditional waiver after 30 days
d.The waiver is enforceable but the subcontractor may sue separately for the bounced check
Explanation
A conditional waiver under Civil Code §8132 only becomes effective when there is evidence of actual payment, meaning the check clears the bank. If payment fails, the waiver has no legal force and the subcontractor retains full lien rights.
Law Reference: Civ. Code §8132This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)