Final answer:
The statute of limitations for written contracts sets a deadline for initiating legal proceedings, with times varying by state. Once expired, claims can't typically be pursued in court. The timeframe ensures that parties are not indefinitely liable for old contracts.
Step-by-step explanation:
The statute of limitations for written contracts is a legal provision that sets the maximum time after an event within which legal proceedings may be initiated. When the period specified by the statute of limitations expires, the claim is typically barred and cannot be pursued in court. This time period varies by state and the nature of the contract. For example, some states may have a 4-year limitation for written contracts, while others may allow up to 6 years. It provides certainty for parties to know when they are no longer liable for old contractual obligations. However, there are certain exceptions where the statute of limitations may not apply, such as cases of fraud.
It's important to interpret the language of contracts effectively, as contracts are frequently at the center of legal disputes (FIGURE 9.8). Also, while the Constitution prohibits ex post facto laws, this principle does not directly apply to the statute of limitations for contracts since it targets criminal laws LibreTexts™.