In India, the limitation period for breach of contract is governed by the Limitation Act, 1963. The Act provides a time limit within which a person can file a suit for breach of contract. This time limit varies depending on the nature of the contract and the type of breach.
The Limitation Act prescribes a general limitation period of three years for filing a suit for breach of contract. This period is calculated from the date on which the contract was breached. However, there are certain exceptions to this general rule.
In case of a continuing breach of contract, the limitation period is calculated from the date of the last breach. For instance, if a party fails to pay rent for a leased property for a period of three years, the limitation period will start from the date of the last non-payment.
Similarly, in case of a breach of contract by a public servant, the limitation period is six years from the date on which the cause of action arose. This is to ensure that there is adequate time for the aggrieved party to take legal action against a public servant who breaches a contract.
Moreover, for contracts that are executed under a registered instrument, such as a lease deed or a sale deed, the limitation period is 12 years from the date on which the cause of action arose.
It is important to note that the limitation period is not the same as the period within which a suit must be filed. A party can file a suit even after the limitation period has expired, but the defense of limitation can be raised by the opposing party.
In conclusion, it is important for parties to be aware of the limitation period for breach of contract in India. Failing to take timely legal action can result in the loss of legal rights and remedies. If you are a party to a contract and believe that the other party has breached the terms of the agreement, it is advisable to consult a lawyer and take timely legal action.
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