A limitation period is the time after which a claim can no longer be enforced. The claim does not disappear entirely, but it becomes unenforceable: the debtor can invoke limitation and the court must then reject the claim.
The periods that matter
Article 3:306 of the Dutch Civil Code sets a general period of twenty years, but the shorter periods apply far more often. A claim to performance of a contractual obligation is subject to five years under Article 3:307, running from the day after the claim becomes due. A claim in damages, whether in contract or tort, is subject to five years under Article 3:310, running from the day after the injured party became aware of both the damage and the person responsible, with an absolute limit of twenty years from the harmful event.
Special periods exist as well: two years for consumer sales in some respects, and a longer regime for personal injury, where the twenty-year outer limit does not apply.
Interrupting the period
Articles 3:316 to 3:318 set out how limitation is interrupted. Issuing proceedings interrupts it, as does acknowledgement of the claim by the debtor, and so does a written reminder under Article 3:317 in which the creditor unequivocally reserves the right to performance. After an interruption a fresh period starts, of the same length as the original, capped at five years where the original was longer.
A written reminder must be clear. A message asking when payment can be expected is generally not enough; a letter stating that the claim is maintained and that payment is demanded is.
Where it goes wrong
Creditors regularly assume that negotiations suspend the period. They do not. Long settlement discussions are the classic way for a claim to expire, and the fix is a short reminder letter every few years, or a written agreement to extend the period.
Related terms
See also breach of contract, notice of default and prejudgment attachment.
Our civil law team checks limitation before a claim is pursued, and defends on it where it has run.
