Answer FileBusiness Law

How long do I have to sue for breach of contract in California?

The answer, cited

In California you have four years to sue on a written contract under Code of Civil Procedure section 337 and two years on an oral contract under section 339, with the clock generally starting at breach. Parties can shorten these periods by contract, and sales of goods follow the four-year rule of Commercial Code section 2725.

Four years for a written contract; two years for an oral one. Code of Civil Procedure section 337 sets the four-year period for actions on a contract, obligation, or liability founded on a written instrument, while section 339 gives oral agreements two years. The clock generally starts at breach (not when the contract was signed, and not necessarily when the damage is felt) though continuing performance and installment obligations can create separate accrual dates for each missed payment. Watch three common modifiers. First, parties may shorten the period by contract, and commercial agreements frequently do. Second, claims styled as fraud run three years from discovery (section 338(d)), and unfair competition claims under Business and Professions Code section 17200 run four. Third, a written acknowledgment or part payment can restart the clock on a debt (section 360). Sales-of-goods contracts follow the Commercial Code's own four-year rule (Commercial Code section 2725).

Authority: Cal. Code Civ. Proc. § 337

Source: Cal. Code Civ. Proc. § 337 · Checked: · Maintained by the California Attorney Registry from official State Bar of California records. Legal information, not legal advice.

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