Perry and Tim negotiate a contract governed by the UCC. Perry is worried about being sued, so Perry and Tim negotiate an agreement wherein each will only have 16 months to pursue a claim for breach. Tim, claiming the UCC gives him four years to sue, files a claim after three years. Can Tim go forward with his claim?
A) Yes, because the UCC does allow him four years and parties cannot change that.
B) Yes, because the UCC allows him four years and parties can only extend the UCC statute of limitations, not shorten it.
C) No, because buyers and sellers are free to negotiate contractually a shorter time period than the UCC's four year statute of limitations.
D) No, because parties to a contract are never allowed to negotiate on the statute of limitations.
E) It depends upon the contract terms.

Question

Quizplus · Accepted Answer

The Uniform Commercial Code (UCC) does allow parties to a contract to negotiate a shorter statute of limitations period than the default four years, as long as the period is not less than one year. Therefore, Perry and Tim's agreement to a 16-month period is valid, and Tim cannot pursue a claim after three years.

Perry and Tim Negotiate a Contract Governed by the UCC