California Breach of Written Contract Statute of Limitations: Four Years Under CCP § 337

What the statute says

Section 337 sets a four-year period for actions on a written contract, obligation, or liability, subject to the exceptions in section 336a. The same four-year period covers an action to recover on a book account, on an account stated in writing, and on the balance due on a mutual or open account, as well as an action based on the rescission of a written contract.

Where rescission is sought on the ground of fraud or mistake, the four-year period does not begin until the aggrieved party discovers the facts — a discovery rule written into the section itself.

When the clock starts

A contract claim generally accrues on breach, not on the date the contract was signed and not on the date damage is fully quantified. Where an agreement calls for performance in instalments, each missed instalment can start its own period, so a single contract may generate several deadlines.

Section 337 also provides that once the period has run, a person may not bring suit or initiate an arbitration to collect the debt. For a money judgment on an obligation secured by a mortgage or deed of trust, the section limits the timeframe to three months following exercise of the power of sale.

Key exceptions and tolling

• Oral contracts are two years.An action on a contract, obligation, or liability not founded on an instrument in writing carries the two-year period in Code of Civil Procedure section 339, not four.
• Fraud or mistake in rescission.For an action based on rescission of a written contract on fraud or mistake grounds, the four-year period runs from discovery of the facts, not from the transaction.
• Personal injury framed as contract.Where the gravamen is bodily injury, courts look to the nature of the harm rather than the label; the two-year period in section 335.1 can apply even to a claim pleaded in warranty.
• Sale of goods.Warranty claims for economic loss on the sale of goods between commercial parties are governed by Commercial Code section 2725, which sets its own four-year period running from tender of delivery.
• Public entity defendants.A contract claim against a public entity requires a Government Code claim presentation — one year for causes of action other than death, personal injury, and personal property damage.

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