Statute of Limitations Clause Law and Legal Definition
A statute of limitations clause changes the statute of limitations which applies to a contractual dispute dealing with the subject matter of the contract. For example, according to law, the statute of limitations for litigations may be six years, however the parties can contractually agree to shorten that period in order to eliminate the "discovery rule" which shall extend the statute of limitations during the period a party is unaware of the breach, or both. The following is an example of the statute of limitations:
The parties agree that any action in relation to an alleged breach of this Agreement shall be commenced within one year of the date of the breach, without regard to the date the breach is discovered. Any action not brought within that one year time period shall be barred, without regard to any other limitations period set forth by law or statute.