What is the purpose of a statute of limitations?

The purpose of a statute of limitations is to establish time limits for legal actions. This legal concept is crucial as it dictates the maximum period one can wait before filing a lawsuit, ensuring that cases are brought forward in a timely manner while evidence and witness recollections are still fresh. It serves the broader goals of justice and societal stability by preventing the indefinite threat of litigation and promoting the resolution of disputes within a reasonable timeframe. Thus, once the statute of limitations expires, legal action typically cannot be initiated on the claim in question.

The other options focus on different legal principles such as defining obligations (duty of care), assessing contractual fairness, and regulating property transactions, none of which pertain directly to the timeframe limitations set forth by statutes of limitations.