What is the statute of limitations for a business debt?

I own a small business 5 years ago a local company performed a service for my company. No contract was drawn up. When the local company completed the service and sent me an invoice, the amount of the invoice was twice as much as verbally agreed to. I never signed the invoice and I have not paid the invoice because we have not been able to come to an agreement. Now, after 5 years, the local company has hired an attorney to sue me for the full amount of the original invoice. Is there a statue of limitations on this local company being able to collect on this 5 year old invoice? Do I have any recourse with this matter?

Asked on February 11, 2016 under Business Law, Colorado

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

In your state, most debt collection actions, such as for services provided to a busienss, would be considered "collection of debt on account" have a six (6) year statyte of limitations. Your defense based on wht you write would be to show (e.g. by credible testimony; or better yet, even informal writings, like emails or text messages) what the agreed-upon amount was: you do have to pay the amount you agreed to pay, but do not have to pay amounts in excesss of what you agreed to.


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