A verbal contract is a legally binding agreement made between two parties without any written documentation. The problem with verbal contracts is that they are difficult to prove if there is a dispute or breach of contract. One question that is frequently asked is, “What is the statute of limitations on a verbal contract?”
In general, the statute of limitations on a verbal contract varies depending on the type of contract and the state where the contract was made. For instance, if the verbal contract involves the sale of goods, the statute of limitations may vary from one to four years, depending on the state. On the other hand, if the contract relates to a personal injury claim, the statute of limitations may be as short as one year in some states.
In most states, the statute of limitations for verbal contracts falls under the category of “oral contracts” and can range from three to six years. However, some states have no specific time limit for oral contracts, and the statute of limitations will be determined based on other factors.
It is important to note that the statute of limitations begins to run from the date of the breach of contract or the last performance made under the contract. Therefore, it is essential to keep track of the timeline and ensure that legal action is taken within the statute of limitations period.
If a dispute arises regarding a verbal contract, the parties involved should seek legal advice as soon as possible. A lawyer can help determine the statute of limitations for the contract and recommend the best course of action to resolve the dispute.
In conclusion, the statute of limitations on a verbal contract varies depending on the type of contract and the state where the contract was made. Therefore, it is crucial to keep track of the timeline and seek legal advice when a dispute arises. By doing so, individuals can protect their rights and interests under the law.