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What do you need to know about the limitation period in the UAE?
Limitation period refers to the time period within which a claim has to be submitted before the rightful forum or court. When a claim is submitted before the limitation period closes, the same will be accepted by the courts, and in the case of the latter, it will be subject to further rules and, in most cases, such a claim can be rejected for exceeding the time limit prescribed by law. The limitation period can, in this sense, be better understood as a technical rule of qualification for a claim. There are many reasons for this rule of practice; one such rule is to ensure that a claim is being submitted for adjudication within a reasonable time period. Lack of this rule can, in other words, create a chaotic litigation system that wouldn’t serve the purpose of reasonableness or justice.
The limitation period is, however, much more than a simple rule referring to a specific time limit, and in fact, it cannot be summarized in a single rule. There exist different time limits applicable for different types of claims. Such rules will be discussed in this article, along with the supplementary conditions that are to be satisfied when ascertaining the applicable time limits.
Limitation period applicable for various types of claims:
As we discussed, there are different time limits or limitation periods that apply to different types of matters. For instance, the limitation period that applies to a contractual claim would be different than what applies to an employment dispute claim.
Construction Contracts: For construction contracts, the period of limitation runs for ten years or longer, if so, agreed between the parties, and for this time period, both the architect and the contractor remain liable for defects that can endanger the solidity or security of the building (Article 880). Contract for sale of goods: When a matter concerns the sale of goods or a claim for terminating a contract of sale of goods or reducing the price for the goods etc. the general norm is that the limitation period shall run for one year from the date of delivery of the goods (Article 524).
Other Rules concerning limitation period:
As we discussed earlier, the limitation period is much more than a few simple rules referring to the time limit and include amongst others the following rules in its application:
The limitation period constitutes a crucial technical ground for the admissibility of a claim. However, that said, the parties can still make submissions explaining the delay in the submission of a claim when lawful excuses exist. In such instances, the court would decide the justification of such lawful excuse, and the admissibility of the claim pursuant to the rules governing limitation shall be subject to preliminary adjudication. It is critical to gain a thorough understanding of the rules governing limitations in order to avoid potential losses in the future.