What is the statute of limitations for contract claims in Maryland?

1. Written Contracts

Md. Code, Courts & Judicial Proceedings § 5-101 provides a 3-year general SOL for civil actions, including written contracts. Maryland's short 3-year window catches many claimants by surprise.

2. Oral Contracts

Section 5-101 also applies a 3-year SOL to oral contracts. Maryland treats both contract types identically for general purposes.

3. Sealed Instruments / Promissory Notes

Md. Code, Cts. & Jud. Proc. § 5-102 grants a 12-year SOL for specialties, including contracts under seal, promissory notes, and certain bonds. Sealed instruments thus enjoy substantially longer SOL.

4. Sale of Goods (UCC Article 2)

Md. Code, Com. Law § 2-725 (UCC § 2-725) provides a 4-year SOL for breach-of-sales claims from tender of delivery. Parties may shorten to 1 year by original agreement.

5. Open Account / Account Stated

Open accounts use the 3-year SOL under § 5-101. The clock runs from the last item charged.

6. Accrual Rule

The cause accrues at breach. Each missed installment under an installment contract starts its own SOL.

7. Discovery Rule for Fraudulent Concealment

Maryland applies a discovery rule for inherently undiscoverable injuries. § 5-203 tolls SOL where the defendant fraudulently concealed the cause of action.

8. Tolling

Md. Code, Cts. & Jud. Proc. § 5-201 tolls for minority and mental incompetency. SCRA tolls for active military service. Defendant absence from Maryland may toll under § 5-205.

9. Contractual Modification of SOL

Maryland permits reasonable contractual shortening of SOL. Extensions are generally unenforceable before accrual.

10. Borrowing Statute

Maryland does not have a true borrowing statute; lex loci contractus typically governs SOL.

This is legal information, not legal advice.