Irvine, CA asked in Contracts and Business Law for California

Q: I joined an organization over 2 years ago. Today they sent me the invoice from 2022. Is that invoice still valid? In CA

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1 Lawyer Answer
James L. Arrasmith
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Answered
  • Sacramento, CA
  • Licensed in California

A: In California, the validity of an invoice sent several years after the services were provided or goods were delivered depends on a few factors, including the nature of the agreement and the statute of limitations for debt collection. Typically, businesses should bill for services or products promptly, but there isn't a specific law that prohibits billing for something from over two years ago directly.

The statute of limitations for written contracts in California is four years, and for oral contracts, it's two years. This timeframe means that a creditor has this period to initiate legal action to collect a debt. If the invoice you received is for a service or product delivered under a contract (whether written or oral), the organization may still have the right to collect, assuming they are within this legal timeframe.

It's important to review any agreement or contract you might have had with the organization to understand the terms regarding billing and payment. If you're unsure about the validity of the invoice or your obligations, it might be beneficial to seek advice to clarify your rights and responsibilities. Keep in mind that communication with the organization could also help resolve any misunderstandings or disputes regarding the invoice.

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