What does the statute of limitations establish?

The statute of limitations establishes time limits for bringing legal actions. This legal principle ensures that claims are made within a certain timeframe, which varies depending on the type of legal action. It serves several important purposes: it promotes timely resolution of disputes, aids in the preservation of evidence, and protects individuals from prolonged threats of litigation. By enforcing these limits, the statute of limitations facilitates fairness in the legal process, ensuring that cases are resolved while evidence and witness testimony are still available and relevant.

The other options focus on different aspects of the law that aren't related to the concept of time limitations on legal claims. For instance, establishing the amount of damages pertains to the outcomes of trials or settlements rather than the process of initiating a lawsuit. Lease agreements and real estate transactions deal with contractual terms and conditions, which do not involve the timing aspect that the statute of limitations addresses.