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TIL about a one-year statute of limitations on oral contracts in California
I was talking to a coworker named Mike at the warehouse in San Jose last month. He said he loaned his neighbor $500 cash with just a handshake deal but never got it back. When I asked why he didn't sue, Mike told me you only have one year to file on an oral agreement under California law. Has anyone else run into that limit?
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williams.jenny2mo ago
Nah, that's wrong - verbal contracts have four years in California unless it's for goods under $500.
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keith_rivera192mo ago
Man I've definitely been the guy who thought a handshake was enough and ended up with nothing. California's statute of frauds is brutal for stuff like this too, I remember my buddy lost $2k on a car deal because he didn't write anything down. But yeah you're totally right about the four year limit on oral contracts here, that's the default under CCP 337. I barely remember my own phone number half the time so trying to recall a verbal agreement from two years ago is just asking for trouble honestly.
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