SB 762: Contracts.

Existing law generally regulates the nature of contracts and establishes principles for the interpretation of contracts.

This bill would require any time specified in a contract of adhesion for the performance of an act required to be performed to be reasonable.

Existing law provides that if an employment or consumer arbitration requires the party which drafted the arbitration agreement to pay fees and costs before arbitration can proceed or during the pendency of an arbitration, the drafting party is in breach of the agreement, in default of arbitration, and waives its right to compel arbitration if it does not pay the fees within 30 days after the date they are due.

This bill would require the arbitration provider to provide invoices for the fees and costs described above, in their entirety, to all parties to the arbitration on the same day and by the same means. The bill would require those invoices to be issued as due upon receipt unless the arbitration agreement expressly provides a different time for payment. For fees and costs due during the pendency of the arbitration, the bill would require any extension of time for the due date to be agreed upon by all parties to the arbitration. The bill would make technical and conforming changes.