How to Cancel a Contract's Statute of Limitations in California

A contract represents a legal agreement between parties exchanging value for performance or goods.

The statute of limitations on a contract in California tends to be similar to that of other states in that it creates a time deadline for how long a party has to seek legal remedy on the given contract. After this time limit is up, the injured party can't sue the other contract party over the contract. In California this deadline expires after two to four years from when the contract performance period ends (depending on the contract type). However, a few steps can be taken to extend it.

Things You'll Need

• Original contract copy
• Addendum document signed by both parties

Instructions

Extension by Mutual Agreement

1. Obtain a copy of your existing contract. Confirm in the terms when the contract ends. Contact the other party in the contract verbally and ask if the party would be willing to extend the specified time period of the contract.

2. Draft a written amendment to the existing contract (an addendum) with the extension terms desired. Send the draft to the other contract party for review and edits if necessary.

3. Prepare a final written copy of the addendum based on edits or changes. Sign the bottom of the addendum and have the other contract party sign it as well. Notarize the addendum with the services of a licensed notary. Keep the original and provide a copy to the other contract party for their file. Perform based on the new changes.

Extension by Court Action

1. Determine how you've been injured in a contract by another party involved. Take your case to a lawyer versed in contract law and discuss the matter with him. Retain the lawyer's services as necessary to press your case of contractual fraud or coercion.

2. Send initial communications through your lawyer to the other party demanding remedy for the alleged fraud or coercion you suffered. Allow the other party to provide an acceptable settlement offer if possible as a remedy. Sue the party in court if no reconciliation is offered.

3. Pursue the litigation through your lawyer alleging contractual deception or pressure. Petition the court to suspend the statute of limitations applicable to the contract until the case is ended. Wait for your lawyer to maneuver the case through the legal system for a resolution. Pay your attorney for his services when the case is complete.

Tips & Warnings

• If pursuing an amendment, try to pitch the change as a benefit to the other party. He will likely be more amenable to a change if it is tied to an improvement in whatever he will get out of the contract.

• Litigation on contracts generally can only recover the worth of the contract itself. Since legal fees can be much more, and injury damages are not allowed except in cases of fraud, many times it is not worth suing over a contract. The end result can be a net financial loss even if you win in court.

References

• Expertlaw; California Statute of Limitations for Civil and Personal Injury Actions - An Overview: Aaron Larson; July 2004
• Lawzilla: California Statute of Limitations
• CA Legislature: California Code of Civil Procedure: Sections 335-349.4
• CA Legislature: Commercial Code: Sections 2701-2725.
• Kinsey Law Offices; Breach Of Real Estate Contracts --- General Concepts; Eugene Kinsey

Resources

• Nolo Press: What Should You Do if a Collector Tries to Collect a Time-Barred Debt?