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HomeCommercial CodeDiv. 2Ch. 7§ 2725 Contract Breach Time Limits

§ 2725 Contract Breach Time Limits

Commercial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 2725 Contract Breach Time Limits

Key Takeaways

  • •You have 4 years to sue someone if they break a sales contract. You can agree to shorten this time to at least 1 year, but you can't make it longer.
  • •The 4-year countdown starts when the contract is broken, even if you don’t know about it yet. For example, if something is wrong with a product, the clock starts when it’s delivered unless the problem only shows up later.
  • •If you sue on time but the case gets dismissed for some reason (not because you gave up or didn’t try), you get 6 extra months to sue again for the same problem.
  • •This rule doesn’t change other laws about pausing the countdown, and it doesn’t apply to problems that happened before this law started.

Example

You buy a used car, and the seller promises it will run fine for a year. After 6 months, the engine breaks down because of a hidden problem.

The 4-year countdown to sue starts when the engine breaks (because that’s when you find out about the problem), not when you bought the car. You have 4 years from that breakdown to take legal action.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 2725 Contract Breach Time Limits

(1) An action for breach of any contract for sale must be commenced within four years after the cause of action has accrued. By the original agreement the parties may reduce the period of limitation to not less than one year but may not extend it. (2) A cause of action accrues when the breach occurs, regardless of the aggrieved party’s lack of knowledge of the breach. A breach of warranty occurs when tender of delivery is made, except that where a warranty explicitly extends to future performance of the goods and discovery of the breach must await the time of such performance the cause of action accrues when the breach is or should have been discovered. (3) Where an action commenced within the time limited by subdivision (1) is so terminated as to leave available a remedy by another action for the same breach such other action may be commenced after the expiration of the time limited and within six months after the termination of the first action unless the termination resulted from voluntary discontinuance or from dismissal for failure or neglect to prosecute. (4) This section does not alter the law on tolling of the statute of limitations nor does it apply to causes of action which have accrued before this code becomes effective. (Added by Stats. 1967, Ch. 799.)

Last verified: January 23, 2026

Key Terms

breach of contractstatute of limitationscause of actionbreach of warranty

Related Statutes

  • § 10506 Lease Default Action Deadlines
  • § 2714 Buyer Damages For Nonconformity
  • § 2715 Seller Breach Damages
  • § 2701 Collateral Contract Remedies
  • § 2702 Seller Rights For Insolvent Buyers

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Commercial Code. Section 2725.
View Official Source