Limitation Period For Agreement
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FAQ
Otherwise, parties to a contract can agree that a different period of limitation than the usual six-year limitation period for a claim based in contract shall apply.
Another issue which often binds parties is that a contractual claim must be brought within the statutorily prescribed limitation period. However, parties can opt out of this limitation period, as discussed in a 2009 Singapore case.
(1) Where, before the expiration of the period prescribed for a suit or application in respect of any property or right, an acknowledgement of liability in respect of such property or right has been made in writing signed by the party against whom such property or right is claimed, or by some person through whom he
The High Court's recent decision in Price v Spoor 2021 HCA 20 has confirmed that parties can effectively contract out of limitation periods imposed by statute. The decision provides certainty as to the validity of a number contractual provisions, although some questions remain unanswered.
A contractual limitation period holds any party accountable for any damages or failure to fulfill his or her end of a bargain. When it comes to construction agreements, limitation periods pertain to claims are brought against a contractor.
