The statute of limitations refers to the legal time within which a party must bring a lawsuit. One of its several purposes is to ensure fairness by encouraging the timely resolution of disputes and prevent the indefinite threat of legal action. It usually begins from the date the harm occurred or when it was discovered. In some cases, contracts may include a shorter time frame to file a lawsuit.

      It’s important to act within the set time limit because once it passes, the right to take legal action is generally lost. 

       The statute of limitations for filing a business lawsuit depends on the type of claim and the jurisdiction. 

      Here are some of the most common types of claims and their general timeframes: 

• Breach of contract:  In most states, the statute of limitations for written contracts ranges from 3 to 6 years. While for oral contracts, it’s typically 2 to 4 years . 
• Fraud: Generally the statute of limitations in fraud claims range from 2 to 6 years from the date of discovery . 
• Tort claims: Like negligence or interference with business relationships typically have a statute of limitations of 2 to 3 years. 

Collection of debts: the statute of limitations generally ranges from 3 to 6 years.