What is the statute of limitations for an oral agreement in Texas?

Study for the Texas Promulgated Contracts Exam. Gain understanding with detailed explanations and various question formats. Prepare effectively and ace your test!

In Texas, the statute of limitations for an oral agreement is indeed two years. This means that if a party wants to enforce an oral contract, they must bring their lawsuit within two years of the time when the breach occurred or when they became aware of the breach.

This two-year period is established under Texas Civil Practice and Remedies Code § 16.002, which outlines the statutes of limitations for various types of actions. The reasoning behind shorter limitations for oral agreements compared to written contracts is that oral agreements can be more difficult to prove and enforce due to the lack of tangible evidence.

The other options represent different time frames for various types of agreements and legal actions in Texas, such as written contracts or certain tort claims, but for oral agreements specifically, the correct and applicable limit is two years.

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