It would have been absurd if legal claims and liabilities were allowed to survive forever. The law does not protect indefinitely any imprudent person in a contract sleeping over his own rights.
With passage of time not only memories fade out but also records are destroyed or lost.
In view of the above, any claim for breach of contract must be made before the court within a specified time limit, after which the remedy or legal recourse for compulsory enforcement against any non-compliant party is lost. This time limit for legal action is called ‘limitation period’ and is provided in the Statutes of Limitation.
Limitation Period differs between real estate and non real estate transactions and also varies from state to state.
Even by virtue of part payment a fresh period of limitation starts running since it sets the clock of limitation back to the starting point.
The Statutes of Limitation protects creditors from absconding debtors by suspending the running of the limitation period during their hiding.
