Legal Question in Construction Law in California
Statute of Limitations for Breach? How is date determined?
I understand that the statute of limitations for a breach of contract is timed from the date of the breach.
How is the date of breach determined (for statute of limitation purposes)?
Is it the date that one party finally writes a letter claiming a breach? If so, does that party have to actually use the term ''breach'' rather than just a describing the problem?
Or is it the date that that the breach was suspected or discovered? If so, what if there is a lag in the notification of the contractor while one has others inspect the problem while deciding on a course of action?
Also, what if the party ultimately breaches in a number of ways but one doesn't put the early breaches in writing in order to avoid antagonizing the other party?
Or is the date based on something else?
Thanks!
1 Answer from Attorneys
Re: Statute of Limitations for Breach? How is date determined?
In general, there are two basic ways to determine when the breach occurred. The first is when the time for performance specifically stated in the contract passes with the performance not completed. In other words, you determine the breach by looking to the express terms of the contract.
The second, is using a reasonable standard under all the cirumstances surrounding your transaction.
Overall, it is a factual inquiry which will depend on the specific facts of each case.
If the amount at issue is over the small claims amount (generally $5K or $7.5K depending on the county and whether a party is a corporation) then feel free to contact my office for a free consultation.
Good Luck.
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