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?
Test yourself: pick an answer
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.
More Breach of contract and remedies MCQs
- Q10Harrow Ltd contracts to buy 500 units from a supplier at £40 each. The supplier fails to deliver. On the delivery date the same units are…
- Q1What is the general aim of an award of damages for breach of contract?
- Q2Tallis Bakery Ltd orders a new industrial oven from Vane Engineering, which delivers it six weeks late. As a result Tallis loses (1) its…
- Q3Fenwick Events cancels a block booking of 40 hotel rooms in breach of contract, three months before the event date. The hotel accepts the…
- Q4A software licence obliges the licensee to pay £50,000 if it breaches a non-disclosure clause. The licensor's business depends on the…
