SENATE BILL REPORT

SB 6401

BYSenators Pullen, Moore, Bluechel, Bauer, DeJarnatt and Hansen

Revising the period of limitations on actions to enforce agreements.

Senate Committee on Law & Justice

Senate Hearing Date(s):January 28, 1988

Senate Staff:Dick Armstrong (786-7460)

AS OF JANUARY 25, 1988

BACKGROUND:

The period of time to commence an action on contracts is limited by statute.  The statute of limitations for actions based on a written agreement is six years.  The statute of limitations for actions based on a contract which is not in writing is three years.

Persons engaged in many commercial businesses often times do not enter into a written contract with customers.  It is suggested that the statute of limitations should be extended to six years for all actions based on contracts, whether written or not.

SUMMARY:

The statute of limitations is extended to six years for contracts that are not in writing or based on a written instrument.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 25, 1988