Oral Contract Statute of Limitations

With regards to the statute of limitations, which of the following is a valid time period for the stated contracts:

  1. oral – 3 years, written – 5 years
  2. oral – 4 years, written – 6 years
  3. oral – 2 years, written – 4 years
  4. oral and written contracts both have 4 years.

The answer is C.  It might help your memory to think of it this way:  oral contracts are given less time because they are a ‘softer’ form of agreement – obviously having something in writing is much stronger.