Can you waive statute limitations

Flagstar Capital Markets Corp. The contract between the parties contained a provision stating that a breach of warranty claim would not accrue until the breach was discovered or disclosed and the breaching party failed to cure after a demand by the Seller.

Absent that clause, the statute of limitations on a breach of warranty claim would start running on the closing date of the loans. The Court decided that the statute of limitations provision in the contract was unenforceable. The reason was that the public policy in favor of having a defined and predictable statute of limitations period prevailed over the public policy in favor of freedom of contract.

The important takeaway for contracting parties as it relates to the statute of limitations and otherwise is that while freedom of contract is broad, it is not unlimited. Parties cannot agree to a provision that is inconsistent with public policy. If you are considering entering into a contract or anticipate a breach of contract matter, contact us for a consultation. That distinction is without a difference, so the anti-waiver law applies to both.

Martin , Va. A basic tenet of fraud law is that fraud must relate to a present or pre-existing fact and cannot be predicated on unfulfilled promises or statements as to future events. The court proceeded to hold that the waiver could not be enforced because the other requirements of the statute had not been met either.

It also attempted to waive the right to plead the statute of limitations for an indefinite period of time, rather than for a maximum five-year extension of the limitations period. A similar result a finding of waiver invalidity was reached in Slaey v.

Harrington , a bankruptcy appeal in the Eastern District of Virginia. The client signed the agreement. The district court, however, reversed. Waiver of Statute of Limitations. To the extent permitted by applicable law , Borrower hereby expressly waives and releases to the fullest extent permitted by law , the pleading of any statute of limitations as a defense to payment of the Debt or performance of its Other Obligations.

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