How long do we have to sue on this Alabama contract, and can the contract shorten it?
Six years for most contracts. Ala. Code § 6-2-34 requires actions founded on promises in writing not under seal, actions for the recovery of money upon a loan or upon a stated or liquidated account, and actions upon any simple contract or speciality not specifically enumerated in that section (the published text spells it "speciality") to be commenced within six years. For a sale of goods the period is four years: an action for breach of any contract for sale must be commenced within four years after the cause of action has accrued, and by the original agreement the parties may reduce the period to not less than one year but may not extend it; a cause of action accrues when the breach occurs, regardless of the aggrieved party's lack of knowledge, and a breach of warranty occurs on tender of delivery except where a warranty explicitly extends to future performance and discovery must await that performance, while a cause of action for damages for injury to the person in the case of consumer goods accrues when the injury occurs (Ala. Code § 7-2-725(1)-(2)).
The trap
The shortening power in § 7-2-725(1) is specific to a contract for sale, it works only through the ORIGINAL agreement, and one year is the floor: a later amendment shortening the period, or a six-month clause, is not what the subsection authorises. Alabama's discovery rule for goods is also narrow: time runs from the breach whether or not the buyer knew, and the future-performance exception requires the warranty to extend explicitly to future performance. Two things sit beside the four years and are easy to miss: an action commenced in time but terminated so as to leave another remedy may be recommenced within six months of that termination, unless the termination was a voluntary discontinuance or a dismissal for failure to prosecute, and the section does not alter the law on tolling (§ 7-2-725(3)-(4)). Outside the UCC the contract cannot shorten the period at all: except as may be otherwise provided by the Uniform Commercial Code, any agreement or stipulation, verbal or written, whereby the time for the commencement of any action is limited to a time less than that prescribed by law for the commencement of such action is void (Ala. Code § 6-2-15).
5 authorities
- statuteAla. Code § 6-2-34enactment date not established
The words that state the rule
The following must be commenced within six years: (1) Actions for any trespass to person or liberty, such as false imprisonment or assault and battery; (2) Actions for any trespass to real or personal property; (3) Actions for the detention or conversion of personal property; (4) Actions founded on promises in writing not under seal; (5) Actions for the recovery of money upon a loan, upon a stated or liquidated account or for arrears of rent due upon a parol demise; (6) Actions for the use and occupation of land; (7) Motions and other actions against the sureties of any sheriff, coroner, constable, or any public officer and actions against the sureties of executors, administrators, or guardians for any nonfeasance, misfeasance, or malfeasance, whatsoever, of their principal, the time to be computed from the act done or omitted by their principal which fixes the liability of the surety; (8) Motions and other actions against attorneys-at-law for failure to pay over money of their clients or for neglect or omission of duty; and (9) Actions upon any simple contract or speciality not specifically enumerated in this section.
- statuteAla. Code § 7-2-725enactment date not established
The words that state the rule
An action for breach of any contract for sale must be commenced within four years after the cause of action has accrued. By the original agreement the parties may reduce the period of limitation to not less than one year but may not extend it.
- statuteAla. Code § 7-2-725enactment date not established
The words that state the rule
A cause of action accrues when the breach occurs, regardless of the aggrieved party’s lack of knowledge of the breach. A breach of warranty occurs when tender of delivery is made, except that where a warranty explicitly extends to future performance of the goods and discovery of the breach must await the time of such performance the cause of action accrues when the breach is or should have been discovered; however, a cause of action for damages for injury to the person in the case of consumer goods shall accrue when the injury occurs.
- statuteAla. Code § 7-2-725enactment date not established
The words that state the rule
(3) Where an action commenced within the time limited by subsection (1) is so terminated as to leave available a remedy by another action for the same breach such other action may be commenced after the expiration of the time limited and within six months after the termination of the first action unless the termination resulted from voluntary discontinuance or from dismissal for failure or neglect to prosecute. (4) This section does not alter the law on tolling of the statute of limitations nor does it apply to causes of action which have accrued before midnight, December 31, 1966.
- statuteAla. Code § 6-2-15enactment date not established
The words that state the rule
Except as may be otherwise provided by the Uniform Commercial Code, any agreement or stipulation, verbal or written, whereby the time for the commencement of any action is limited to a time less than that prescribed by law for the commencement of such action is void.
“Defective” means that reading found something to correct. What you are reading is the rule as it stands after that reading.