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Contract Glossary

Statute of Limitations

Definition

The statute of limitations is your deadline to sue. Miss it, and your claim is dead — no matter how strong it is. For contract disputes, the window is typically 3–6 years depending on the state, but your contract might shorten it.

In Practice

A contractor did shoddy renovation work on your office in 2021. You discover the problems in 2024. In New York, the statute of limitations for breach of a written contract is 6 years — so you have until 2027 to file. In California, it's 4 years — you'd need to file by 2025. Some contracts include a clause shortening the limitation to 1 year. If you signed one, your window might already be closed.

Common in these contract types

ServicesLeaseEmploymentPartnership

Frequently asked questions about statute of limitations

Usually on the date of the breach — not when you discover it. If a contractor installs a faulty roof in January 2023, the clock starts in January 2023, even if you don't notice the leak until January 2025. Some states apply a 'discovery rule' for hidden defects, starting the clock when you knew or should have known about the breach.

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This content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.