Friday, February 4, 2011

A Statute of Limitations for a Contract in Kansas

Kansas law recognizes the validity of written and unwritten contracts. Enforcing any contract in Kansas through the court requires compliance with the statute of limitations -- that is, the lawsuit must be filed by a deadline set by statute or the lawsuit will be forever barred. The statute of limitations on a contract in Kansas depends on whether the contract was in writing or not.

Written Contracts

    Kansas Statute 60-511 specifies a five-year limitation period for "any agreement, contract or promise in writing." As a rule, the limitation period begins to run from the date the contract is breached, such as failing to make a schedule payment under a promissory note. The limitation period applies to real property claims, including those based on writings such as a deed.

Oral Contracts

    Contracts not in writing can be based on oral statements or the conduct between the parties, express or implied. Kansas Statute 60-512 specifies a limitation period of three years to enforce contracts not in writing. Included in these types of contracts are open-ended accounts, such as credit card accounts. Like a written contract, the limitation period begins on the date the contract is breached.

Affecting Statute

    Kansas law provides for revival of a contract debt that would otherwise be expired under the statute of limitations. If a debtor makes any payment on a contract debt after the limitation period expired, the creditor is entitled to file a lawsuit on the balance of the debt within the original limitation period -- that is, three years for unwritten contracts and five years for written contracts. However, simply acknowledging the debt will not revive the statute, unless the debtor signs a writing that includes the acknowledgment.

Judgment

    A court judgment based on a contract debt will result in a new statute of limitations of five years, regardless of whether the contract was in writing or not. Within five years of obtaining the judgment, the creditor must take some action to collect the judgment, such as a wage garnishment, or file a renewal affidavit with the court requesting an extension of the statute because the judgment is not paid. If there is no such action for a five-year period, the judgment becomes dormant. Two years after the judgment becomes dormant, the debtor can request the court to release the judgment.

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