Suing for Breach of Contract

• Sales of real property.
• Promises to pay someone else's debt.
• A contract that takes longer than one year to complete.
• Property leases for more than one year.
• Contracts for more than a certain amount of money, the amount of which is set by the state.
• A contract that will go beyond the lifetime of the one performing the contract.
• The transfer of property upon the death of the party performing the contract.

If you orally agree to one of the types of contracts listed above or one listed in your state's Statute of Frauds and do not memorialize the contract in writing, the contract will not be enforceable.

Statute of Limitations
If you sue for breach of contract, you must sue within the statute of limitations. Statutes of limitations are laws that set the deadline or maximum period of time within which a lawsuit or claim may be filed. The deadlines vary depending on the circumstances of the case, and the type of case or claim. The periods of time also vary from state to state and vary depending on whether filed in federal or state court. If a lawsuit or claim is not filed before the statutory deadline, the right to sue or file a lawsuit or claim is barred. Under certain circumstances, a statute of limitations will be extended beyond its deadline.

A chart listing the statute of limitations for some of the most common causes of action, including breach of written and oral contract, is available at Nolo.com.

For a detailed discussion of statute of limitations, go to Statute of Limitations Basics at AllBusiness.com.

Suing in Small Claims Court
You might want to consider suing for breach of contract in small claims court if the damages you will request for breach of contract fall within its limited jurisdictional amounts. Small breach of contract actions are commonly brought in small claims court, and more than 50 percent of claims filed in small claims courts are filed by businesses.

Small claims courts exist for the purpose of resolving simple disputes quickly and economically and are considered courts of limited jurisdiction, allowing claims for dollar amounts ranging from $1,500 to $15,000. In small claims court, the judgment is usually rendered immediately after the hearing. Appeal rights for both plaintiffs and defendants are limited.

Parties are generally not represented by attorneys in small claims court actions. The procedures in small claims court are much more informal than in other types of litigation. Little preparation is needed or required. Providing you have documentation regarding the breach, preferably a written contract and other evidence, you should be able to prove your case. You should also consider beforehand any defenses the customer or client might make and be able to address and dismiss them.