Open account Sol Need help!

Discussion in 'Credit Talk' started by godaddyo, Jun 27, 2001.

  1. godaddyo

    godaddyo Well-Known Member

    After all that has been discussed here on SOL, I am trying to determine what this section of the Ohio revised code means in reference to SOL. U.C.C. Sect. 2-725 Statute of Limitations in Contracts for Sale

    (1) An action for breach of any contract for sale must be commenced within four years after the cause of action has accrued. By the original agreement the parties may reduce the period of limitation to not less than one year but may not extend it.

    (2) A cause of action accrues when the breach occurs, regardless of the aggrieved party's lack of knowledge of the breach. A breach of warranty occurs when tender of delivery is made, except that where a warranty explicitly extends to future performance of the goods and discovery of the breach must await the time of such performance, the cause of action accrues when the breach is or should have been discovered.

    (3) Where an action commenced within the time limited by subsection (1) is so terminated as to leave available a remedy by another action for the same breach, such other action may be commenced after the expiration of the time limited and within six months after the termination of the first action unless the termination resulted from voluntary discontinuance or from dismissal for failure or neglect to prosecute.

    (4) This section does not alter the law on tolling of the statute of limitations nor does it apply to causes of action which have accrued before this Act becomes effective.


    Does this refer to outstanding debts such as credit cards or medical bills. What exactly is a "Contract For Sale" what debts fall under this? Any interpretations are welcome...
  2. Squawk1200

    Squawk1200 Well-Known Member

    Off the top of my head --

    In general, the UCC applies to the cale of GOODS -- that is, tangible stuff. Contracts for credit are not contracts for the slae of goods. So I'd bet that a different provision applies to breaches of credit card agreements.
  3. godaddyo

    godaddyo Well-Known Member

    Thanks for the Reply. Do you think that it would apply to an emergency room visit in which the patient has no idea what is going to be done until the services are rendered? I have been trying to get this whole statute of limitations thing straightened out. Do you think that goods only apply and not services. I cant seem to find anything about open ended accounts except this section from the UCC. What actually defines an open account? If goods for future sale can be considered an open account, Why not any service under contract in which the exact terms are not layed out until all services have been rendered. If the terms arent plainly stated isnt it an open account? This get to confusing. Thanks again!!
  4. Squawk1200

    Squawk1200 Well-Known Member

    The following is the court articulated test to determine whether a contract is goverened bythe UCC:

    Put another way:
    I would be very, very surprised if any court would find a contract for medical treatment to be governed by the UCC. More likely, one of the following applies:

    HOWEVER---Ohio has a lot of funky statutes of limitations for specific actions, one of which may apply here. But the general ones are as I've cited.

    Finally, I've never seen a stated account for services. By definition such arrangements are for goods only.
  5. Crdt Dfnse

    Crdt Dfnse Well-Known Member

    My friend you are the shiznick, good info, thanks! But tell me (just out of sheer curiosity) have you Shepardized the posted cites to maintain them as good law? Not that Iâ??m asking you to do that mind you, because Shepardizing CAN be a bit of workâ?¦ Just wondering. [;-)
  6. KristyW

    KristyW Well-Known Member


    Still looking for a definitive answer for Open ended accounts in Ohio which isn't in legalese - I will let you know if I find something.
  7. KristyW

    KristyW Well-Known Member

    One thought - have you tried calling your state attorney general?
  8. godaddyo

    godaddyo Well-Known Member

    Good thoughts, I wish I had the mind of an attorney. Anyway, I just wonder if the 15 year written contract rule is the standard in Ohio. It was posted elsewhere, but I will post it for reference sake. § 2305.06 Contract in writing.
    Text of Statute

    Except as provided in sections 126.301 [126.30.1] and
    1302.98 of the Revised Code, an action upon a
    specialty or an agreement, contract, or promise in
    writing shall be brought within fifteen years after
    the cause thereof accrued.

    Do you think this might be the only standard to go by in Ohio, or might there be another one to argue?

    I realize that I am asking for free advice and I do not hold you accountable. I am just looking for anything that could be considered outside of 2305.06 for an argument on open or written contracts.
  9. godaddyo

    godaddyo Well-Known Member

    Thanks Kristy, I am looking for anything that you can offer. By the way I will call my states Attorney General tommorow. Thanks for keeping me in mind. In my own time I will be creating a chart for others to go by in each state for the Statute of limitations and judgements for SOl. Your website and others are quite informative, but it would be nice if there was a complete SOL guide state by state, that didnt just supplly judgement and non-judgement SOL, but also provides the info on what type of debts will apply under the SOL (a little more in depth than your site offers). This would be a great source for content for any credit related websites by the way... Thanks again.
  10. godaddyo

    godaddyo Well-Known Member

    There are some funky statutes indeed for Ohio. What is wrong with this state?LOL.. Services and goods, what a fine line indeed...
  11. godaddyo

    godaddyo Well-Known Member

    You have such a good vocabulary. Shiznick and Munchausen have been stolen by yours truly. I hope that I am not violating any TM or copyright laws. Lol.:)
  12. godaddyo

    godaddyo Well-Known Member

    From Mitchell v. Speedy-Car-X, Inc., 712 N.E.2d 768, 769 (Ohio Dist. Ct. App. 1998):
    Where a contract is for the sale of goods, R.C. Chapter 1302 (Article 2 of the Uniform Commercial Code) applies. R.C. 1302.02. The applicable statute of limitations for breach-of-contract actions, including breach-of-warranty actions, under R.C. Chapter 1302 is four years. R.C. 1302.98. However, "[w]hen the transaction relates primarily to services, an incidental sale of merchandise does not make it a sales contract governed by the commercial code." Prokasy v. Pearle Vision Ctr. (1985), 27 Ohio App.3d 44, 46, 27 OBR 46, 48, 499 N.E.2d 387, 389.

    THis definatlely bring about a sense of what might me considered a true goods or service contract. I just wondered because how can one be sure of the services rendered by a hospital in an Emergency Room visit? There is no real control by the patient what the doctor orders, therefore there is no real terms implied. Is there any way out of this flimsy contract?
  13. Crdt Dfnse

    Crdt Dfnse Well-Known Member

    Haha, have at it, although would you like me to explain Munchhausen Syndrome in more detail first? [;-)

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