Statute of limitations varies from county to country and from state to state. California statutes specify the statute of time limitations periods for contract-related lawsuits. The limitations range from one year to 10 years. Section 339 of California’s Code of Civil Procedure sets a two-year statute of limitations for oral contracts. While Section 337 of California’s Code of Civil Procedure requires a four-year statute of limitations for written contracts. The California Civil Code also prohibits certain contracts from being oral, accepting them only in written form.
Statute of Limitations: Oral Contracts
Oral contracts are the ones that do not have written documents. These are the agreements between the plaintiff and defendant on the verbal basis. Statute of Limitations requires a plaintiff to file a lawsuit within two years of the alleged breach of an oral contract. California courts enforce an oral contract unless a statute requires it to be in written form. One will need witnesses or other convincing evidence to prove the terms of an oral contract at trial. This makes oral contract cases more complicated compared to written ones as the later comprise clear written documents instead of oral testimonies. Besides, it takes twice as much time and expenses to prove the terms of an oral contract rather than the written one.
Thus, if you decided to form an oral contract, make sure you can prove the existence of such contract. For example, having several witnesses or keeping previous letters, messages, emails, receipts can be useful to confirm your oral contract exists. Before making an oral contract, you should consult a contract attorney to evaluate your options and understand your rights in case legal issues arise. The experienced attorneys at the Margarian Law firm will assist you to determine how to proceed in making oral contracts and will represent you properly at court if the other party breaches the oral contract.
Statute of Limitations: Written Contracts
Written contracts are to be signed by both parties of the contract. This type of contracts are legally binding and easy to enforce compared to oral ones. Written contracts have certain advantages over oral ones. First, written contracts serve as a detailed record of what was agreed between the parties of the contract and are less attainable to misunderstanding. Second, the written contract serves as a mechanism for the easier settlement of the arguments. It clearly sets out the way any dispute over payment and performance is to be resolved. However, poorly drafted written contract may present as many difficulties and uncertainty as an oral contract can. That is why consulting a contract attorney before signing a contract is the most reasonable way to protect your interests and define your requirements clearly. The attorneys at Margarian Law firm are skilled litigators and negotiators. They are well aware of Statutes of Limitation on written and oral contracts and have all the skills to successfully represent you through the entire process of contract signing and litigation.