When does the statute of limitations start for contract breach?
For a breach of contract claim, the limitations clock generally starts when the breach occurs—that is, when the contract is broken and the cause of action is complete. In California, the period is usually 4 years for a written contract under Cal. Civ. Proc. Code § 337 and 2 years for an oral contract under Cal. Civ. Proc. Code § 339.[1][2]
California rule
A contract claim accrues when the defendant’s alleged failure to perform constitutes the breach, not when the plaintiff later discovers the breach, unless a specific discovery-based rule applies by statute or case law.
The California Courts self-help guide summarizes the basic rule this way: written contracts are generally subject to a 4-year limitations period, and oral contracts to a 2-year period.[1] Under Cal. Civ. Proc. Code § 337, the 4-year period applies to actions “upon any contract ... founded upon an instrument in writing.” Under Cal. Civ. Proc. Code § 339, the 2-year period applies to actions “upon a contract ... not founded upon an instrument of writing.”[2][3]
Practical takeaway
| Contract type | California limitations period | Clock starts |
|---|---|---|
| Written contract | 4 years | On breach / when performance was due and not made |
| Oral contract | 2 years | On breach / when performance was due and not made |
Important caveat
Some contract-related claims can have a delayed accrual rule if the statute expressly uses discovery language. For example, Cal. Civ. Proc. Code § 339 states that certain title-insurance-related claims do not accrue until discovery of the loss or damage.[3] But for a standard breach of contract claim, the usual rule is accrual at breach.
If you want, I can also explain how California courts treat anticipatory breach, installment contracts, and continuous breaches.