A claim for breach of contract in the UK must be brought within six years from the date of the breach. This is outlined in the Limitation Act 1980.
For example, if a customer fails to pay an invoice by an agreed date, once that date has passed there is a breach, and the supplier has six years in which to claim for payment for the unpaid goods.
That date is very important. The six years period starts when the payment is due, not when the goods were delivered, or when the invoice arrived, or when the supplier realised that payment had not been made.
However, in some circumstances the period can be longer:
- Deed
If the contract is a deed, the limitation period is 12 years. A deed is a formal, written legal document that transfers ownership of property or confirms an agreement.
Unlike a simple contract, deeds often require extra formalities like witness signatures.
- Contracting out
For some projects, e.g. in construction, parties may contract out of the limitation regime or agree a different limitation period.
- Professional negligence
The rules are different for professional negligence cases:
The primary limitation period usually spans six years from the occurrence of the alleged negligence.
However, individuals may become aware of professional negligence after the initial six-year period. A secondary limitation period may be applied, providing an additional three years from the date of discovery to initiate a claim.
While the secondary limitation period extends the timeframe for filing a claim, there is a final cut-off point known as the longstop. This limitation period is set at 15 years after the negligent act; a claim cannot be made after the 15 years.
If you need further information, please contact:
David Tear | 01274 037073 | david.tear@awbclaw.co.uk
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