Legal Question in Business Law in California

According to a treatise on contract language co-published by the State Bar and the University of California,

"A clause specifying that the parties' rights and remedies are cumulative, not exclusive, is commonly found in business agreements. From a practical standpoint, the selection of a particular remedy or remedies at the time of breach will depend on the then-existing circumstances, which can be difficult to predict when the agreement is executed. Accordingly, it is usually better for both parties to ensure that available remedies are as broad as possible." (Quoted from "Drafting Business Contracts" published by Continuing Education of the Bar, at section 15.27, page 338).

On page 553 of the same treatise, in the chapter entitled Promissory Notes, the model language for a promissory note section to be entitled "Events of Default; Holder's Waivers; Remedies Cumulative" the sample language includes the following: "All rights of Holder stated in this Note are cumulative and in addition to all other rights provided by law, in equity, or in any agreement executed in connection with this Note."

So, cumulative rights are pretty standard. Please be assured, however, that no court would allow the Noteholder to "double recover" if you defaulted, despite cumulative rights or remedies. If you want the benefits of the proposed Note, you may have to accept the cumulative rights clause.