Limitation period for a claim in simple contract (Limitation Act 1980, s 5)

Section 5 of the Limitation Act 1980 provides that an action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued. In contract, the cause of action accrues when the breach occurs, whether or not the claimant has yet suffered or discovered the full loss. Ellis broke the contract by failing to deliver the press on the agreed date in May 2021, so time began to run then. Tamsin must issue proceedings within six years of that breach. When she later quantified her lost profits does not affect when time runs. The contract was in writing but was not made by deed, so the 12-year period for actions on a specialty does not apply. The latent damage provisions (ss 14A and 14B) apply to actions for negligence, not to this claim for non-delivery.

Why A is wrong: The three-year 'date of knowledge' period in s 14A applies to latent damage in negligence, not to a contract claim for non-delivery.

Why B is wrong: Time in contract runs from the breach, not from when the claimant discovers or quantifies the loss.

Why C is wrong: Twelve years applies to actions on a specialty, such as a deed; a written contract that is not a deed is a simple contract.

Why E is wrong: The 15-year long-stop in s 14B applies only to negligence claims relying on s 14A.