Statute of Limitations on Stock Purchase Agreements
The statute of limitations provides the maximum time limit within which a legal suit can be filed. The state of limitations on stock purchase agreements vary from state to state.
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Contract
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A lawsuit over a stock purchase agreement can be based on a breach of contract. The statute of limitations for a written contract suit usually ranges from three to six years. The statute of limitations on a verbal contract can be two to six years, depending on the state.
Fraud
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A stock purchase agreement lawsuit may be based on fraud or misrepresentation. The statute of limitations range between three and six years.
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Time Starts
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The statute of limitations starts to run at the time that the cause of action accrues. The cause of action accrues when the breach of contract or fraud occurs. In some cases the time begins to run when the wrongful act was discovered.
Tolling
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The statute of limitations can be tolled or stopped from running in some cases. The time limit will not run if one of the parties is a minor or mentally incapacitated. A bankruptcy filing can also toll the state of limitations.
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