Ark. Code Ann. § 18-14-403 (2026)
Statute of limitations
- A judicial proceeding in which the accuracy of the public offering statement or validity of a contract of purchase is in issue and a rescission of the contract or damages is sought shall be commenced not later than four (4) years after the date of the contract of purchase, notwithstanding that the purchaser's terms of payment may extend beyond the period of limitation.
- If the enforcement of provisions in the contract of purchase requires the continued furnishing of services and the reciprocal payments to be made by the purchaser, the period of bringing a judicial proceeding will continue for a period of four (4) years for each breach, but the parties may agree to reduce the period of limitation to not less than two (2) years.
History. Acts 1983, No. 294, Art. 3, § 3-109; A.S.A. 1947, § 50-1323; Acts 2013, No. 710, § 4.
Amendments. The 2013 amendment redesignated the paragraph as (a) and (b); substituted “shall be commenced not later than” for “must be commenced within” in (a); and substituted “If the enforcement of provisions in the contract of purchase requires” for “However, with respect to the enforcement of provisions in the contract of purchase which require” in (b).
Case Notes
Action Timely.
An action arising from a hotel's revocation of a license agreement that allowed time-share owners access to the hotel's parking and recreational facilities and also terminated the time-share owners's utilities was timely as the action was appropriately viewed as an attempt to enforce contract provisions that required the continued furnishing of services, and the action was commenced within four years of breach. Kessler v. National Enters., Inc., 238 F.3d 1006 (8th Cir. 2001).
In a class action suit against a developer seeking restitution and rescission of the owners' purchase contracts and alleging claims of misrepresentation and breach of contract, this section controlled over the general limitations statute, § 16-56-105; otherwise, the owners' right to seek relief would have terminated before any injury was known to them, contrary to the General Assembly’s intention to protect consumers under the Time-Share Act. Nat'l Enters., Inc. v. Kessler, 363 Ark. 167, 213 S.W.3d 597 (2005), cert. denied, 546 U.S. 1174, 126 S. Ct. 1340, 164 L. Ed. 2d 55 (2006).