402.725 Statute of limitations in contracts for sale.
(1) An action for breach of any contract for sale must be commenced within 6 years after the cause of action has accrued. By the original agreement the parties, if they are merchants, may reduce the period of limitation to not less than one year. The period of limitation may not otherwise be varied by agreement.
(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 sub. (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 6 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 chs. 401 to 409 or before ch. 410 or 411 became effective.
History: 1979 c. 89; 1991 a. 148, 304, 315.
A stringent standard applies in determining whether a warranty explicitly extends to future performance. There must be specific reference to a future time in the warranty, satisfied when a warranty guarantees a product for a particular number of years, or for a less precise, but still determinable period. Selzer v. Brunsell Brothers, Ltd., 2002 WI App 232, 257 Wis. 2d 809, 652 N.W.2d 806, 01-2625.
Implied warranties cannot, by their nature, explicitly extend to future performance. The statute of limitations will always start to run against claims based on implied warranty from the time when delivery of the goods is tendered. Selzer v. Brunsell Brothers, Ltd., 2002 WI App 232, 257 Wis. 2d 809, 652 N.W.2d 806, 01-2625.
While all warranties in a general sense apply to the future performance of goods, the future performance exception in sub. (2) applies only when the warranty explicitly extends to future performance. Evidence that the goods break or physically deteriorate after delivery may be relevant to whether the goods were fit at the time of delivery for the ordinary purpose for which they are used; but consideration of that evidence for that purpose does not impose an express warranty for future performance. City of Stoughton v. Thomasson Lumber Co., 2004 WI App 6, 269 Wis. 2d 339, 675 N.W.2d 487, 02-2192.
The county was a “merchant" under s. 402.104 for purposes of limitation under s. 402.725 (1). County of Milwaukee v. Northrop Data Systems, 602 F.2d 767 (1979).
Wisconsin law was applied despite a contrary choice of law provision in the contract. Office Supply Co. v. Basic/Four Corp., 538 F. Supp. 776 (1982).
Structure Wisconsin Statutes & Annotations
Wisconsin Statutes & Annotations
Chapter 402 - Uniform commercial code — sales.
402.102 - Scope; certain security and other transactions excluded from this chapter.
402.103 - Definitions and index of definitions.
402.104 - Definitions: “merchant"; “between merchants"; “financing agency".
402.105 - Definitions: transferability; “goods"; “future" goods; “lot"; “commercial unit".
402.107 - Goods to be severed from realty: recording.
402.201 - Formal requirements; statute of frauds.
402.202 - Final written expression: parol or extrinsic evidence.
402.204 - Formation in general.
402.206 - Offer and acceptance in formation of contract.
402.207 - Additional terms in acceptance or confirmation.
402.208 - Course of performance or practical construction.
402.209 - Modification, rescission and waiver.
402.210 - Delegation of performance; assignment of rights.
402.301 - General obligations of parties.
402.302 - Unconscionable contract or clause.
402.303 - Allocation or division of risks.
402.304 - Price payable in money, goods, realty, or otherwise.
402.306 - Output, requirements and exclusive dealings.
402.307 - Delivery in single lot or several lots.
402.308 - Absence of specified place for delivery.
402.309 - Absence of specific time provisions; notice of termination.
402.310 - Open time for payment or running of credit; authority to ship under reservation.
402.311 - Options and cooperation respecting performance.
402.312 - Warranty of title and against infringements; buyer's obligation against infringement.
402.313 - Express warranties by affirmation, promise, description, sample.
402.314 - Implied warranty: merchantability; usage of trade.
402.315 - Implied warranty: fitness for particular purpose.
402.316 - Exclusion or modification of warranties.
402.317 - Cumulation and conflict of warranties express or implied.
402.318 - Third-party beneficiaries of warranties, express or implied.
402.319 - F.O.B. and F.A.S. terms.
402.320 - C.I.F. and C.& F. terms.
402.323 - Form of bill of lading required in overseas shipment; “overseas".
402.324 - “ No arrival, no sale" term.
402.325 - “ Letter of credit" term; “confirmed credit".
402.326 - Sale on approval and sale or return; rights of creditors.
402.327 - Special incidents of sale on approval and sale or return.
402.401 - Passing of title; reservation for security; limited application of this section.
402.402 - Rights of seller's creditors against sold goods.
402.403 - Power to transfer; good faith purchase of goods; “entrusting".
402.501 - Insurable interest in goods; manner of identification of goods.
402.502 - Buyer's right to goods on seller's repudiation, failure to deliver, or insolvency.
402.503 - Manner of seller's tender of delivery.
402.505 - Seller's shipment under reservation.
402.506 - Rights of financing agency.
402.507 - Effect of seller's tender; delivery on condition.
402.508 - Cure by seller of improper tender or delivery; replacement.
402.509 - Risk of loss in the absence of breach.
402.510 - Effect of breach on risk of loss.
402.511 - Tender of payment by buyer; payment by check.
402.512 - Payment by buyer before inspection.
402.513 - Buyer's right to inspection of goods.
402.514 - When documents deliverable on acceptance; when on payment.
402.515 - Preserving evidence of goods in dispute.
402.601 - Buyer's rights on improper delivery.
402.602 - Manner and effect of rightful rejection.
402.603 - Merchant buyer's duties as to rightfully rejected goods.
402.604 - Buyer's options as to salvage of rightfully rejected goods.
402.605 - Waiver of buyer's objections by failure to particularize.
402.606 - What constitutes acceptance of goods.
402.608 - Revocation of acceptance in whole or in part.
402.609 - Right to adequate assurance of performance.
402.610 - Anticipatory repudiation.
402.611 - Retraction of anticipatory repudiation.
402.612 - “ Installment contract"; breach.
402.613 - Casualty to identified goods.
402.614 - Substituted performance.
402.615 - Excuse by failure of presupposed conditions.
402.616 - Procedure on notice claiming excuse.
402.701 - Remedies for breach of collateral contracts not impaired.
402.702 - Seller's remedies on discovery of buyer's insolvency.
402.703 - Seller's remedies in general.
402.705 - Seller's stoppage of delivery in transit or otherwise.
402.706 - Seller's resale including contract for resale.
402.707 - “ Person in the position of a seller".
402.708 - Seller's damages for nonacceptance or repudiation.
402.709 - Action for the price.
402.710 - Seller's incidental damages.
402.711 - Buyer's remedies in general; buyer's security interest in rejected goods.
402.712 - “ Cover"; buyer's procurement of substitute goods.
402.713 - Buyer's damages for nondelivery or repudiation.
402.714 - Buyer's damages for breach in regard to accepted goods.
402.715 - Buyer's incidental and consequential damages.
402.716 - Buyer's right to specific performance or replevin.
402.717 - Deduction of damages from the price.
402.718 - Liquidation or limitation of damages; deposits.
402.719 - Contractual modification or limitation of remedy.
402.720 - Effect of “cancellation" or “rescission" on claims for antecedent breach.
402.722 - Who can sue 3rd parties for injury to goods.
402.723 - Proof of market price: time and place.