LIMITATION PROVISIONS AND THEIR APPLICABILITY TO ACTIONS BASED ON CONTRACT: A REVIEW OF THE LAW

Abstract

Statutes of Limitation stipulate the time limit within which an action may be instituted in Court after the occurrence of the cause of action. When an action is instituted outside the timeframe specified by the Statute, the right of action is deemed to have become statute-barred and the Court would be divested of the requisite jurisdiction to entertain the matter. When a statutory provision limits the timeframe within which an action may be instituted against a public body, the Courts differ on the application of such a provision to cases founded on contract. Some decisions have adopted a narrow scope and have interpreted these provisions as inapplicable to actions based on contracts while others have adopted a much wider position to accommodate contractual claims. This article provides a historical analysis of the Courts’ application of limitation provisions to cases founded on contract. The article highlights the lack of uniformity in the cases which have interpreted various limitation provisions and the consequential uncertainty of the law as a result. The article also expresses the writer’s opinions on the applicability of limitation provisions to actions founded on contracts.