Question

The law generally restricts the time within which an action can be brought by either party to a contract. This statement is:

Answer 1

Answer:

the statement is in regard to the Statute of Limitations.  

Explanation:

It is good public policy to for citizens to be able to conduct their affairs with the knowledge of potential future litigation that may be brought against them.  

Providing a statute of limitations gives citizens (including corporations and other business entities) to ability to plan and prepare for defenses in case of possible litigation .   After a certain amount of time (usually 3 years in a breach of contract case, but some states as long as 15 years), a citizen can feel confident (as can the insurance carrier) that there are no pending or future actions against such person.