Who determines the statute of limitations for a contract?

• A. Fixed period nationwide
• B. Four years exactly in all states
• C. Determined by federal statute
• D. Controlled by state law

Answer: (D)

The period to sue on a contract is set by the state where the dispute arises. In the United States, contract law and the related statute of limitations come from state law, not a single nationwide rule. The federal government does not establish a general contract SOL, and federal courts apply the state’s limitations rules when the claim sounds in state contract law. When goods are involved, the Uniform Commercial Code offers a framework, but each state adopts and implements its own limitations period, so the exact number of years can vary. Because of this state-by-state basis, the correct viewpoint is that the statute of limitations is controlled by state law.