Can I regulate the statute of limitations in my general terms and conditions?

You can regulate the statute of limitations to a certain extent in your general terms and conditions, for example by agreeing on a shorter period (a forfeiture or complaint period) within which a counterparty must lodge a complaint or file a claim. However, limits apply to consumers: a period that is too short is unreasonably burdensome.

What is the statute of limitations?

The law provides for various limitation periods. If a claim is time-barred, it can no longer be enforced through the courts; at most, a moral obligation remains. In this way, the statute of limitations protects against old claims that are difficult to prove.

Agree on a statute of limitations or forfeiture period

In your general terms and conditions, you can make agreements similar to this: a shorter period within which the counterparty must complain about a defect, or a limitation period after which a claim lapses. This prevents you from being confronted with claims years later. However, this must be clearly and openly documented.

Limits towards consumers

You cannot indefinitely shorten the statutory period vis-à-vis consumers. A clause that excessively shortens the statutory period within which a consumer can complain or file a claim — for example, to less than a year — is easily unreasonably burdensome and therefore voidable. Therefore, adhere to a reasonable time limit.

More space between companies

In business relationships, you have more freedom to shorten time limits. However, even there, the arrangement must be reasonable and clear; otherwise, you risk an appeal against it failing. Have the provision drafted carefully so that it holds up and aligns with your business.

Frequently Asked Questions

Can I shorten the statute of limitations in my terms and conditions?

To a certain extent, yes, via a limitation or complaint period. Limits apply to consumers; a period that is too short is unreasonably burdensome.

How short may the term be?

For consumers, a term of less than a year is easily considered unreasonably burdensome. Adhere to a reasonable term; between businesses, you have more leeway.

What happens after the statute of limitations expires?

A time-barred claim can no longer be enforced; at most, a moral obligation remains.

Manage your payment terms properly?

Our legal experts incorporate watertight forfeiture and complaint periods into your general terms and conditions and advise on the interruption of the statute of limitations. View our contract lawteam or schedule a free consultation.