Legal Services
Limitation is a potential defense to a legal claim, on the basis that the claim has not been brought in time. Legislation prescribes limitation periods within which a legal action must be brought. If a claimant does not bring an action within the relevant limitation period, they run the risk that a defendant will argue any claim is out of time (also referred to as “statute-barred”)
In case of dispute or controversy, if mediation is not able to resolve, it needs to be resolved by litigation. In general, there is a time limit for litigation. Different types of disputes have different time limits.
Types of limitation of action
- General limitation of action: 3 years
- Short term limitation of action: 1 year
Short term limitation refers to the limitation of action less than 2 years
According to article 136 of the General Principles of the Civil Law of China, the limitation period for the following actions shall be 1 year:
- Claim for compensation for bodily injury
- Failing to declare the sale of substandard goods
- Delay in paying or refusal to pay the rent
- Deposit of property that has been lost or damaged
Therefore even where two types of action have the same limitation period, that period may start to run at a different time in each case. In some circumstances, that can mean that one type of action remains open to a claimant even when another is statute-barred.
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