If you are considering whether to seek legal action regarding a breach of contract, you may be wondering: What is the breach of contract statute of limitations??
This is a common question, and the answer may not be as straightforward as you would think. If you are thinking about filing a lawsuit over a breach of contract, here is some general advice to help you ensure that you file your claim within the allowable timeframe.
Timeline for Suing for Breach of Contract
Time limits for suing someone are established through laws called statutes of limitation. Different states have
different time limits, and the limits may vary depending upon the exact nature of the claim. Understandably, this can make it challenging for individuals and organizations to know when they need to act if they plan on seeking legal action regarding a breach of contract.
In Colorado, the general breach of contract statute of limitation, whether the contract is oral or written, is three years. However, if a contract is for a “liquidated debt” or for an “unliquidated determinable amount,” it is subject to a six-year limitations period. An amount is determinable if an agreement sets forth a method for determining the amount due, regardless of the need to refer to facts external to the agreement. The statute of limitation for tort actions arising from a breach of contract is two years.
The exact date at which the clock starts counting down to calculate whether the time-period has expired isn’t always obvious. The clock usually does not start running on the date in which the contract is entered in to. Rather, the countdown to the end of the accepted time-period often begins when the alleged breach of contract is discovered or should have been discovered.
Breach of Contract Statute of Limitations Cases
Every breach of contract case is unique, and because the breach of contract statute of limitations enforces strict restrictions on how long you have to file a lawsuit, it is always in your best interest to contact an attorney as soon as possible. You might find out that special rules apply to your contract. When dealing with breach of contract cases, it is always advisable to get the ball rolling on the process right away to ensure that you know what rules will apply and so that you do not miss any deadlines.
If you require legal assistance regarding an alleged breach of contract, please contact my office today to schedule a free consultation. Call 303-785-7777.