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ICAEW BL · Chapter 4 · Question 8 of 10

A contract made by deed required Norland Ltd to carry out works for Pike Ltd. Norland breached the contract eight years ago and Pike Ltd has only now discovered the breach. Assuming no special rules on concealment apply, is Pike Ltd's claim for breach of contract time-barred under the Limitation Act 1980?

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Reveal answer & explanation

Correct answer: C) No, because the limitation period for a contract made by deed is 12 years from the breach

Explanation

Under the Limitation Act 1980, an action on a simple contract must be brought within six years of the breach. An action on a specialty (a contract made by deed) has a 12-year period. The breach was eight years ago, so Pike Ltd is still within time. The period runs from the breach, not from when the contract was made.

All 10 questions in Chapter 4Breach of contract and remedies MCQs with answers

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