Reminder: Delaware Law Changes Are in Effect

This is a reminder that the changes to the Delaware General Corporation Law, which we discussed in more detail here, went into effect on August 1, 2014.

In addition, a change to the law governing the statute of limitations also went into effect on August 1. Specifically, Title 10 of the Delaware Code was amended by adding a new Section 8106(c), which allows parties to agree to an extension of the statute of limitations for up to 20 years without having to use a sealed instrument, as long as the written contract involves at least $100,000.

Previously, Delaware law provided for a three year statute of limitations for breach of contract claims (Section 8106 of Title 10) and for a four year statute of limitations for breach of contracts governed by Article 2 of the Delaware UCC (Section 2-275 of Title 6). Instead, parties could opt into a 20 years limitations period for breach of contract claims by entering into a contract under seal under common law.

 

 


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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