This guide is maintained as a current resource for September 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Discover when the limitation period starts in breach of contract cases in England and Wales. This comprehensive guide explains how the limitation clock begins on the date of breach, how the Limitation Act 1980 applies, exceptions for concealed breaches, and practical tips to protect legal claims.
If you intend to bring a breach of contract claim in England and Wales, it is crucial to understand when the limitation period begins. The limitation period is the statutory time limit within which you must issue a claim in court; if you miss it, your claim can be barred regardless of its merits. This article explains clearly when time starts to run in different types of contract disputes, the legal rules that govern this, and important practical considerations to protect your legal rights.
Under the Limitation Act 1980, actions for breach of contract are subject to a statutory time limit. In most cases involving a simple contract, the limitation period is six years from when the claim becomes legally enforceable. The starting point for that period is the date when the cause of action accrues - usually the date of the breach itself.
What Does “Accrual of Cause of Action” Mean?
A cause of action accrues when a claimant first acquires the legal right to sue. In contract cases, this generally occurs at the moment the contract is breached - for example:
- When a payment is due but not made by the due date;
- When goods are not delivered on the agreed date;
- When services are not performed as required.
Time starts running from the date of the breach regardless of whether the claimant realises there has been a breach or suffers any financial loss at that moment. In other words, knowledge of the breach is not required for the limitation period to start.
For example, if a payment was due on 1 January 2024 and was not made on that date, the cause of action accrues on 1 January 2024, and the limitation period will start from that date (with the first full day counted after accrual) although precise calculations may exclude the accrual day itself when computing the six‑year period.
Simple Contracts vs Contracts by Deed
The way the contract is formalised affects when time starts and how long a claimant has to sue:
- Simple contracts (ordinary agreements) normally give a claimant six years from the date of breach for issuing a claim.
- Contracts executed as a deed (formally sealed documents, often used in property and other specialised contexts) extend the limitation period to 12 years from the date of breach.
The “accrual” concept applies to both types, so the period runs from the moment a breach occurs. The difference lies only in the length of time available to bring proceedings.
Key Distinctions: Contract vs Tort
The starting point for limitation can differ in other areas of law:
- In contract claims, time usually runs from the date of breach, even if loss is discovered later.
- In tort (e.g., negligence), limitation generally begins when damage is suffered, which may occur after the wrongful act.
This distinction means that in contract law, the limitation period generally begins earlier than in equivalent tort situations.
Exceptions to the Normal Accrual Rule
While the basic rule is that time starts from the breach date, there are exceptions in limited circumstances:
Fraud, Concealment or Mistake
If a defendant has deliberately concealed the breach or committed fraud, the limitation period may not start until the claimant discovers the fraud or could have discovered it with reasonable diligence. The law recognises that it would be unfair to start the clock when the claimant had no realistic way of knowing about the wrongful act.
This principle is important in cases where the breach is actively hidden, but it is not applied routinely to ordinary commercial disputes without concealment.
Practical Considerations in Contract Claims
Calculating the Limitation Period
Because time runs from the date the cause of action accrues, claimants should identify the exact breach date and diarise the deadline to issue proceedings before the six‑year (or 12‑year for deeds) period expires. Strict judicial interpretation means that issuing the claim on the correct date is critical; if the period runs out first, the claim can be barred.
Issuing Proceedings Before Expiry
Issuing the claim form in the court before the limitation period expires (even if the claim is not immediately served on the defendant) typically preserves the claimant's right to pursue the claim. Timely issue is often critical when disputes are complex or involve negotiations.
Standstill Agreements
Parties may agree in writing to pause (“standstill”) the running of the limitation period while exploring settlement or alternative dispute resolution. Such agreements must be clear and made before the statutory deadline expires to be effective.
Common Questions About Limitation Start Dates
Does time start when I first learn about the breach?
No. For contract claims, time usually starts when the breach occurs, not when you find out about it. Discovery of loss does not usually delay the start of the limitation period.
What if my contract was breached gradually?
If there are multiple breaches, limitation typically runs from each individual breach as it occurs. Identifying the first actionable breach is therefore important for calculating time.
Can limitation start later if damage is not apparent?
In rare cases of concealed breaches or fraud, time may be postponed until discovery of the breach, but this is exceptional and fact‑sensitive.
Key Takeaways
In breach of contract cases in England and Wales, the limitation period generally starts when the cause of action accrues - that is, on the date of the breach of contract. For ordinary (simple) contracts, time runs for six years from that date; if the contract is executed as a deed, the period is 12 years. Time usually begins running regardless of when the claimant discovers the breach or suffers loss. Limited exceptions apply in cases of fraud, concealment or similar concealment, where time may be postponed until the claimant becomes aware. Understanding when time starts to run assists both claimants and defendants in managing claims and avoiding the risk of time‑barred actions.
