Key Takeaways

  • Most breach of contract claims in Tennessee are subject to a six-year statute of limitations.
  • Claims involving the sale of goods fall under the Uniform Commercial Code (UCC) and have a four-year limit.
  • Exceptions or tolling may apply, extending or reducing the timeframe based on specific legal circumstances.
  • Written vs. oral contracts have different statutes: written contracts typically have a six-year limit, oral contracts may have a shorter period.
  • Claims may be barred if not discovered in time, but Tennessee does not generally follow the discovery rule for breach of contract cases.
  • The statute of limitations may be altered by contract terms, tolling provisions, or specific statutes.

Tennessee statute of limitations breach of contract may vary in length but will usually be six years.

When it comes to filing either formal criminal charges or a civil complaint, both federal and state courts have certain time limits. These time limits, or statutes of limitation, have been put in place to prevent complainants from indefinitely threatening to file lawsuits. They also serve to make sure evidence is not compromised in these cases.

Duration of Statutes of Limitation in Tennessee

Tennessee, similar to other states, imposes varying time limits for differing types of civil actions. For example, if a plaintiff wishes to file a lawsuit for personal injury, he or she has one year to do so. If the lawsuit pertains to personal property, he or she has three years to file the suit. If the matter relates to collecting rent or debts, the statute of limitations is six years.

Other common examples include:

  • Contract: four or six years, depending on the specific circumstances.
  • False imprisonment: one year.
  • Fraud: three years.
  • Legal malpractice: one year.
  • Libel: one year.
  • Medical malpractice: one year.
  • Personal injury: one year.
  • Product liability: one, three, or four years, depending on the specific circumstances.
  • Property damage: three years.
  • Slander: six months.
  • Trespassing: three years.
  • Wrongful death: one year.

For example, if a person has suffered an injury, he or she must file the lawsuit within a specified period after the attack that injured him or her. If he or she fails to do so, then the person loses the right to file a lawsuit. However, states do make allowances for the fact that some injuries may not show themselves until much later.

Simply put, statutes of limitations set cutoff dates for suing. If a plaintiff misses this cutoff date, then the defendant is able to mount his or her defense using this statute of limitations. In cases where a defendant can prove, first, that a statute of limitations is applicable and, second, that time has run out, the court will usually dismiss the case.

Therefore, if the statute of limitations is one year, when does that year start? For these purposes, time usually starts ticking the moment the claim arises. This may be referred to by the court as the "cause of action" or the "accrual," and it is the first moment when the plaintiff has a reason to sue. However, it is important to note there are certain circumstances or events that can delay statutes of limitations and prolong the period in which one can bring a claim.

For example, assume Person A wants to sue Person B for battery and assault, and the statute of limitations for these offenses is two years. Under normal circumstances, the plaintiff would have two years from when he or she was hit to file a suit. However, if the plaintiff was either underage or deemed mentally incompetent at the time of the incident, then the statute of limitations relevant to the crime committed against the plaintiff may be paused.

Tolling and Exceptions to the Statute of Limitations

While Tennessee generally adheres to strict statutory deadlines, certain legal doctrines can toll, or pause, the running of the statute of limitations. Tolling can be crucial in breach of contract cases where discovery of the breach is delayed or other circumstances prevent timely action.

Common tolling scenarios include:

  • Minority or Incompetence: If the injured party is a minor or legally incompetent at the time the breach occurs, the statute may be paused until they gain capacity.
  • Fraudulent Concealment: If the defendant actively conceals the breach, tolling may apply until the breach is discovered or reasonably should have been.
  • Military Service or Imprisonment: Service members or individuals imprisoned may receive extensions under certain federal or state protections.
  • Contractual Agreements: Parties may agree in the contract itself to limit or extend the statute of limitations, provided such modifications do not violate public policy.

However, Tennessee generally does not apply the discovery rule to contract actions. This means the statute often begins to run at the moment the breach occurs—not when the breach is discovered.

Breach of Contract Cases in Tennessee

With regard to breach of contract cases in Tennessee, a six-year statute of limitations will be applicable to most cases. There is, however, an exception which could be applicable to a breach of contract. This exception would lower the period in which someone is required to file a suit. On the other hand, a different statute of limitations could allow a period of more than six years in a breach of contract case. The possibility also exists that none of Tennessee's statutes of limitations are applicable, due to the parties having signed a contract agreeing to a specific period of limitations.

In most breach of contract cases in Tennessee, the statute of limitations starts on the day the breach occurs, which is generally not difficult to determine. For example, if Company X agreed to make a delivery to Company Y on Sept. 1, 2018, but fail to honor its agreement, then the breach took place on Sept. 1, 2018.

If a breach of contracts relates to a sale of goods, then the Uniform Commercial Code (UCC) will be applicable. A four-year statute of limitations is set for any contract that falls under the UCC.

Impact of Breach Type on Limitation Period

Not all breaches are treated equally under Tennessee law. The type of breach can affect how courts view the statute of limitations:

  • Material Breach: A substantial failure that defeats the purpose of the contract typically starts the statute immediately.
  • Anticipatory Breach: When one party declares in advance they won’t fulfill their contractual duties, the statute starts when the declaration is made.
  • Partial or Continuing Breaches: If the breach is ongoing (e.g., recurring failure to pay), the statute may restart with each occurrence, but only for the most recent violations.

Understanding which category a breach falls into helps determine the exact window available for legal recourse.

When the Statute Begins to Run

In Tennessee, the statute of limitations for a breach of contract generally begins on the date of the breach itself, not when the plaintiff becomes aware of it. This is known as the accrual date. For example:

  • If a party fails to make a scheduled payment on June 1, 2020, the statute of limitations begins that day.
  • If the contract involved ongoing obligations (e.g., monthly services), each missed payment or failure to perform could be considered a separate breach with its own start date.

Understanding the accrual date is critical. Misjudging when the clock starts could result in losing the right to pursue a legal remedy. Only under very narrow exceptions (e.g., fraudulent concealment) will Tennessee courts consider extending the limitation based on discovery.

Uniform Commercial Code and Sales of Goods

Under Tennessee law, breach of contract claims involving the sale of goods are governed by the Uniform Commercial Code (UCC). The UCC imposes a shorter statute of limitations than general contract law:

  • UCC Statute of Limitations: Four years from the date the breach occurs.
  • Modification Clause: This period can be shortened by agreement to not less than one year, but cannot be extended beyond four years.

It's important to note that even if the breach isn't immediately obvious—such as with defective products—Tennessee does not generally extend the deadline based on discovery. Parties should be vigilant in monitoring contract performance and defects.

Written vs. Oral Contracts in Tennessee

The statute of limitations for breach of contract in Tennessee differs depending on whether the contract is written or oral:

  • Written contracts typically fall under the six-year statute of limitations.
  • Oral contracts, however, may be subject to a shorter three-year period, depending on the nature of the claim and supporting evidence.

Because oral contracts are harder to prove and more vulnerable to challenge, it’s essential to act quickly if a breach is suspected. Courts evaluate such cases on the credibility of testimony and any documentation or communications that support the agreement.

Frequently Asked Questions

1. What is the statute of limitations for breach of contract in Tennessee? Most written contracts have a six-year statute of limitations. Contracts under the UCC, such as sales of goods, typically have a four-year limit.

2. Does the statute of limitations differ for oral contracts? Yes, oral contracts may have a shorter limitation period—usually three years—depending on how the case is interpreted by the courts.

3. Can I still sue if I just discovered the breach years later? Tennessee does not generally follow the discovery rule for contract claims. The statute of limitations starts when the breach occurs, not when it’s discovered—unless tolling applies.

4. Can a contract alter the statute of limitations period? Yes, parties can agree to shorten (to no less than one year) or extend the statute of limitations in the contract, as long as it's not unconscionable or against public policy.

5. How do I determine the exact date the statute begins? The statute typically begins when the breach occurs—such as a missed payment, failure to deliver, or repudiation—not when you realize it happened.

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