Cal. Civ. Code § 1951.5
California Civil Code
Operative Text
Section 1671, relating to liquidated damages, applies to a lease of real property.
Cal. Civ. Code § 1951.5 establishes that the rules governing liquidated damages under Section 1671 extend to real property leases. This means that any clause in a lease that sets a predetermined dollar amount for a breach must satisfy the standards that California law imposes on such clauses generally. The provision effectively brings residential and commercial lease agreements within the same liquidated-damages framework that applies to other contracts under California law.
Plain English — not legal advice.
Under Cal. Civ. Code § 1951.5, operators who include liquidated-damages clauses in their leases are subject to the requirements of Section 1671, which generally requires that such amounts represent a reasonable estimate of actual harm at the time the lease is signed. Compliant landlords typically ensure that any preset damage figure is not so disproportionate to anticipated losses that it functions as a penalty. Lease templates used by property managers are often reviewed with this standard in mind before execution.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Cal. Civ. Code § 1951.5 means that a liquidated-damages clause in your lease must conform to California's Section 1671 standards, and a clause that fails those standards may be unenforceable. Tenants who believe a landlord is attempting to collect a preset damage amount that does not meet this standard can raise the provision as a defense in a legal proceeding. Tenant-rights organizations and local rent boards can be useful starting points for understanding how this rule has been applied in similar situations.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 6, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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