What are the statue of limitations for a breach of oral contract in California?

Asked almost 2 years ago - North Hollywood, CA

The oral contract was made in 2009 but breached in February 2011. The problem is that both parties have a different timeline when the contract was breached. I am arguing the fact that the contract was breached in March 2011, but the other party is stating that it was breached in 2010 and it has passed the statue of limitations.

I was suppose to be the co-owner of a market but I was unfairly ousted in February 2011. The only proof I have is that they stopped making my payroll around that time.

Do I have a case?

Attorney answers (7)

  1. Shaun K. Boss

    Contributor Level 14

    8

    Lawyers agree

    Answered . You must file suit within two years from the date of the breach.

    This answer does not constitue legal advice, nor does it creat an attorney/client relationship. If you are... more
  2. Michael Charles Doland

    Contributor Level 20

    6

    Lawyers agree

    Answered . I agree with Mr. Boss that the statute of limitations on an oral contract are two years from the date of breach.

    The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may... more
  3. Jeff Hoang Pham

    Contributor Level 12

    6

    Lawyers agree

    Answered . Mr. Boss is correct, the statute of limitations for breach of a verbal contract is 2 years from the date of breach (CCP section 339).

    The information presented here is general in nature and is not intended, and should not be construed, as legal... more
  4. Matthew P. Blair

    Contributor Level 11

    5

    Lawyers agree

    1

    Answered . California Code of Civil Procedure Section 339 states:

    Within two years: 1. An action upon a contract, obligation or
    liability not founded upon an instrument of writing, except as
    provided in Section 2725 of the Commercial Code or subdivision 2 of
    Section 337 of this code; or an action founded upon a contract,
    obligation or liability, evidenced by a certificate, or abstract or
    guaranty of title of real property, or by a policy of title
    insurance; provided, that the cause of action upon a contract,
    obligation or liability evidenced by a certificate, or abstract or
    guaranty of title of real property or policy of title insurance shall
    not be deemed to have accrued until the discovery of the loss or
    damage suffered by the aggrieved party thereunder.

    2. An action against a sheriff or coroner upon a liability
    incurred by the doing of an act in an official capacity and in virtue
    of office, or by the omission of an official duty including the
    nonpayment of money collected in the enforcement of a judgment.

    3. An action based upon the rescission of a contract not in
    writing. The time begins to run from the date upon which the facts
    that entitle the aggrieved party to rescind occurred. Where the
    ground for rescission is fraud or mistake, the time does not begin to
    run until the discovery by the aggrieved party of the facts
    constituting the fraud or mistake.

    Depending on the exact date of February 2011 the breach occurred the statute of limitations may have already run. I suggest you contact a local business attorney as soon as possible to see if you 1) have a case and 2) still have time to file a lawsuit.

    I hope this helps!

    Matthew Blair
    www.beverlyhillsbusinesslawyers.com

  5. Michael Raymond Daymude

    Contributor Level 20

    5

    Lawyers agree

    Answered . You may have other causes of action, such as fraud, which have a longer statute of limitations. This is not a lawsuit you can successfully prosecute on your own. If you do not have counsel, you need to retain one. If you cannot afford one, you're probably out of luck.

    I am licensed in California only and my answers on Avvo assume California law. Answers provided by me are for... more
  6. Jane Ellen Bednar

    Contributor Level 8

    4

    Lawyers agree

    Answered . You must file suit within two years from the date of breach of an oral contract. Due to the complexity of issues in your case, you need to consult an attorney immediately. The defendant may try to knock out your lawsuit based on the alleged running of the statute of limitations. Good luck.

    My answers to questions posted on Avvo are not intended to constitute legal advice or to create an attorney-client... more
  7. Timothy John Broussard

    Contributor Level 12

    2

    Lawyers agree

    Answered . I agree on the 2 years for oral contract statute, and there appears to be a matter of dispute on the date of breach. That will likely be a triable issue to determine, but it is interesting the other party is saying they breached your agreement in 2010. You may want to get them to confirm that later. Now, what is concerning that you intended to be a co-owner without an agreement and you were on the payroll. You may want to look further into employment issues as you may have a wrongful termination action and breach of good faith & fair dealing on not to terminate without good cause. There may be something more than an At-Will employment agreement present if you were a Co-owner. These are only matters to think about and certainly odds are against you as an owner without anything in writing. Paper evidence of your financial support or otherwise in exchange in forming the business might be important.

    Tim Broussard, Esq
    949-261-7700

    This email does not create an Attorney-Client relationship.

Related Topics

Business contracts

A contract is an agreement voluntarily entered into by two or more parties that is intended to create legal obligations between them.

Business litigation and breach of contract

A breach of contract means breaking a binding legal document by failing to satisfy the terms of the contract without a lawful reason.

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