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The statute of limitations for breach of contract suits

On Behalf of | Nov 4, 2021 | Business Litigation |

Whether you are a business owner considering legal action against another firm or you worry about the possibility of a breach of contract case targeting your company, it is vital to go over the statute of limitations for these cases. In California, those who want to file a lawsuit over an alleged contract breach must take action with a certain time period.

Some business owners do not realize that if they wait for too long, the legal claim becomes invalid. Moreover, the time limits vary depending on the nature of the contract.

The statute of limitations for breach of contract cases

According to the Judicial Branch of California, those interested in filing a lawsuit over the alleged breach of a written contract have four years from the day when the contract was allegedly breached to file suit. However, the time limits are even shorter for oral contracts. The statute of limitations for oral contracts is two years after the breach, and parties can prove the existence of oral contracts by providing canceled checks, receipts and other forms of evidence.

Handling a breach of contract case

As a business owner, you likely have a variety of questions and concerns if a breach of contract case has come up. Make sure you familiarize yourself with the ins and outs of the allegations and gather as much evidence as you can. Take steps to safeguard your firm’s interests and understand what is at stake, especially if you face significant financial penalties. Moreover, try to remain calm and do what you can to prepare for court.


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