Limitation Period

Limitation Period is an important concept in foreign trade contracts and law, referring to the period specified by law or contract within which a party must exercise its rights or file a claim, failing which it will lose the right to win a lawsuit or claim. In international sale of goods, the limitation period usually applies to the period for the buyer to raise objections or claims regarding the quality or quantity of goods, and for the seller to raise objections regarding the buyer's rejection of goods or refusal to pay. Common bases include the two-year limitation period stipulated in the United Nations Convention on Contracts for the International Sale of Goods (CISG), and the limitation periods under national laws (such as the three-year statute of limitations under China's Civil Code). Usage scenarios are mostly found in claim clauses, inspection clauses, and force majeure clauses in contracts. Notes: The starting point of the limitation period is usually from the date the goods arrive at the destination or the date the buyer discovers or ought to have discovered the non-conformity of the goods; the limitation period may be interrupted or extended by mutual agreement; different jurisdictions have different limitation periods, which need to be clearly stipulated in the contract. Unlike other terms such as 'Warranty Period', the warranty period is the period of quality assurance, while the limitation period is the legal period for exercising rights; the warranty period may be longer or shorter than the limitation period.