Limitation periods, also known as statutes of limitations, are laws that set a deadline for individuals to file a legal claim or lawsuit. These deadlines vary by jurisdiction and type of claim, but they serve the purpose of ensuring that claims are filed in a timely manner, preserving evidence and witness testimony, and avoiding the potential for stale claims.

But can you contract out of limitation periods?

The short answer is generally no, as limitation periods are considered a matter of public policy and cannot be varied by agreement between parties. In other words, parties cannot waive or extend limitation periods by contract.

This principle was established in the landmark UK case of Johnson v. Gore Wood & Co. where the court held that a party cannot contract out of a limitation period unless permitted by statute. This means that if there is no statutory provision allowing for a waiver or extension of a limitation period, then parties are bound by the deadline set by law.

However, there are some exceptions to this general rule. For example, certain types of claims may be subject to different limitation periods depending on the terms of a contract between the parties. In addition, parties may agree to suspend or toll the running of a limitation period, which effectively stops the clock from running for a certain period of time.

There are also cases where the court may exercise its discretion to extend a limitation period, particularly if there are exceptional circumstances that prevented a claim from being filed within the relevant deadline. This may include situations where a claimant was unable to pursue their claim due to fraud or concealment by the defendant.

It is important to bear in mind that the laws regarding limitation periods vary by jurisdiction, and the rules and exceptions may differ from one jurisdiction to another. Therefore, it is always advisable to seek legal advice if you have any doubts or concerns about your rights and obligations in relation to a limitation period.

In conclusion, while parties cannot contract out of limitation periods in most cases, there may be certain exceptions and situations where the deadline can be extended or suspended. It is important to understand the relevant laws and seek legal advice to protect your rights and interests.