If you loan money to a relative who doesn't pay the money back, what is the statute of limitations on the loan in California? Does it make a difference if you don't have a written contract?
If you loan money to a relative who doesn't pay the money back, what is the statute of limitations on the loan in California? Does it make a difference if you don't have a written contract?
As is explained here, for a written contract, the limitations period is four years. For an oral contract, two years.
An oral contract also presents issues of proof -- the defendant may claim that the money was not given, or was a gift. With a written contract there may be a defined payment schedule or due date for repayment, such that there is a date of default subsequent to the date the money is loaned. Depending on the fact, with an oral contract the statute of limitations may start to run when the money is loaned, as opposed to starting on a later date of default under the terms of a written contract.